Markets end lower; Infosys in a free fall again

Commentary

oi-Sunil

By Sunil Fernandes

Updated: Monday, July 16, 2012, 15:35 [IST]

Markets began the week on a dismal note with the Sensex shedding 110 points, while the Nifty shed 30 points to close at 5197 points, on selling pressure from domestic institutions.

Infosys lost ground for the third day on the trot, losing 2% today as investors continued to be worried on the company's growth prospects.

In fact, according to reports Barclays Capital has added Hindalco Industries Ltd to its top-10 stock picks in India, in place of Infosys which was downgraded to 'equal-weight' following disappointment over its April-June results. Interestingly, TCS which reported a good set of numbers also dropped more than 2%, as investors resorted to profit booking in the counter.

The metals pack was hit badly in trade with stocks of Tata Steel, Hindalco and Jindal Steel losing significant ground.

The inflation data, which came in lower than expected failed to cheer the markets. Analysts believe that the lower than expected inflation data of 7.25% would offer little prospects of a rate cut in the RBI Monetary Policy Review of July 31, 2012.

Asian markets ended the day mixed, while Europe was trading firmly in the red. The UK's FTSE, the German DAX and the French CAC were all down less than a per cent at 3.30 pm IST.

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