Markets plunge; Nifty closes below 5000 for the first time since January

Published: Tuesday, May 8, 2012, 15:38 [IST]

Markets plunge; Nifty closes below 5000 levels

The benchmark indices ended sharply lower today, as the Nifty closed below the 5000 level for the first time since mid-January. Selling pressure in ITC and Information Technology stocks dragged markets lower. The BSE Sensex closed the day lower by 366 points at 16546 points, while the NSE Nifty closed the day lower by 114.20 points at 4995.95 points.

Among the shares that dropped sharply today were ITC and a host of information technology stocks. While ITC shed almost 2%, Infosys Technologies lost 2%, TCS lost more than 5%, while Wipro lost more than 2%. IT stocks fell after Cognizant lowered its revenue guidance.

JP Morgan today downgraded the TCS stock to neutral from overweight. The investment bank felt that the current environment would make it harder for the company to surprise positively on the upside.

Among the gainers today were Coal India, Hindalco, GAIL and SAIL. Hindalco gained after the company reported profitability that was better than market expectations.

Among the mid cap losers were Pantaloon Retail and Balrampur Chini. European shares were also trading lower on ongoing fears of austerity measures in France and Greece could impact finances in these countries.

GoodReturns.in

Story first published: Tuesday, May 8, 2012, 15:38 [IST]