BSE Sensex hits 1-week low; HCL,TCS shares fall despite strong Q2 results

BSE Sensex hits 1-week low; HCL,TCS shares fall despite strong Q2 results

30-stock index fails to maintain upward momentum to close lower by 132.11 pts at 20,415.51.

Erasing early gains,BSE Sensex on Thursday lost 132 points to close at a fresh one week low as investors booked profits in bluechips led by Tata Consultancy Services (TCS) and Infosys after these IT majors posted smart quarterly numbers.

After opening higher and rising to as much as 20,621.3,the 30-stock index failed to maintain the upward momentum and closed lower by 132.11 points or 0.64 per cent at 20,415.51. This is Sensex’s biggest single-day fall in this month.

Similarly,the broader-based National Stock Exchange index Nifty fell by 43.20 points,or 0.71 per cent,to 6,045.85. The SX40 index on the MCX Stock Exchange closed lower by 49.26 points at 12,179.29.

Brokers said the selling pressure was confined to recent gainers led by IT sector,which had surged on attractive quarter earnings.

Sensex graph October 17


They said a mixed trend in the Asian region and lower opening in European markets as Chinese rating company downgraded the American government’s debt,further influenced the sentiment.

Out of the 30 BSE index components,18 stocks declined and 11 gained,while one stock — State Bank of India (SBI) – remained unchanged.

Major Sensex losers were Tata Consultancy Services,Infosys,Wipro,Larsen and Toubro,Cipla,Tata Motors,Maruti Suzuki,ICICI Bank,HDFC Bank,Dr Reddy’s Lab and NTPC.

Sectorally,the IT sector index suffered the most by losing 3.59 per cent,followed by Teck index by 2.61 per cent. Capital goods index lost 2.30 per cent and auto index by 1.20 per cent.

Sensex Nifty graph October 17