The BSE Sensex fell today as tech stocks came under sharp selling pressure after Tata Consultancy Services disappointed the Street with quarterly results.
Sensex declined 201 points to 21,063 while Nifty slumped 57 points to 6,261.
TCS reported slower-than-expected growth in dollar revenues for the December quarter on Thursday. Shares in the company fell 5.7 per cent lower to 2,215. India’s biggest outsourcer also posted a dip in operating margins from 30.2 per cent in Q2 to 29.7 per cent in Q3.
TCS’ results also weighed on other IT stocks. HCL Technologies fell 0.8 per cent to Rs. 1,381.15, while Wipro lost 3.1 per cent ahead of its results later in the day. However, Infosys shares ended flat.
Barring energy stocks, most other sectors traded in the red. Realty stocks fell as much as 2.4 per cent, while banking stocks lost 1.5 per cent lower despite in-line earnings by private sector bank.
Axis Bank and HDFC Bank have met profit estimates in the December quarter, while maintaining stable asset quality. Asset-stressed state-run banks are yet to report numbers though.
Coal India was the top Nifty loser, down 10 per cent to Rs. 272 after the stock went ex-dividend today. The PSU coal miner had announced a dividend of Rs. 29 last week.
33 of the 50 stocks fell on the Nifty. Reliance Industries shares ended flat at Rs. 884.55, ahead of quarterly earnings announcement later in the day.