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Saturday, February 22, 2020

Market opens on a volatile note; Infosys tanks 16%

Among the gainers were Yes Bank, TCS, Bharti Airtel, HUL, ICICI Bank, Hero MotoCorp, HDFC twins, RIL and ITC, rallying up to 7 per cent. The rupee appreciated by 27 paise to 70.87 against the US dollar in early trade on Tuesday as optimism about US-China trade talks and easing crude oil prices enthused investors.

By: PTI | Mumbai | Updated: October 22, 2019 5:56:02 pm
infosys, vishal sikka, NR Narayana Murthy, infosys arun jaitley, arun jaitley infosys, indian express news Shares of Infosys plunged up to 14 per cent after an anonymous group claiming to be employees of the IT major placed a whistleblower complaint to the company’s board. Photo by Reuters

Equity benchmarks BSE Sensex and NSE Nifty stared on a volatile note on Tuesday as index heavyweight Infosys dampened the rally in energy and banking stocks in early trade.

Shares of Infosys plunged up to 15.9 per cent after an anonymous group claiming to be employees of the IT major placed a whistleblower complaint to the company’s board, accusing CEO Salil Parekh and CFO Nilanjan Roy of indulging in unethical practices to boost short-term revenue and profits.

After swinging nearly 300 points in early session, the 30-share index was trading 82.38 points, or 0.21 per cent, lower at 39,216 in morning trade.

Markets, gold, petrol, diesel price today LIVE updates

In similar movement, the broader NSE Nifty fell 2.50 points, or 0.02 per cent, to 11,659.35.

Other losers in the Sensex pack included Tata Motors, HCL Tech, Tech Mahindra and Asian Paints, shedding up to 4 per cent.

Among the gainers were Yes Bank, TCS, Bharti Airtel, HUL, ICICI Bank, Hero MotoCorp, HDFC twins, RIL and ITC, rallying up to 7 per cent.

In the previous session on Friday, the 30-share BSE Sensex closed 246.32 points or 0.63 per cent higher at 39,298.38, while the Nifty rose 75.50 points or 0.65 per cent to settle at 11,661.85.

Domestic financial markets remained closed on Monday due to assembly elections in Maharashtra.

Foreign institutional investors (FIIs) continued to be net buyers in the capital market, infusing Rs 36.56 crore on Friday, while domestic institutional investors purchased shares worth Rs 586.88 crore, data available with stock exchange showed.

Elsewhere in Asia, bourses in Hong Kong, Seoul and Tokyo were trading in the green after US President Donald Trump on Monday said progress in developing the text of a partial trade pact with China means he will likely be able to sign it next month.

Stock exchanges in Shanghai, however, were trading in the red.

The US markets finished on a positive note on Monday.

The rupee, meanwhile, appreciated by 22 paise against the US dollar to trade at 70.92 in early session.

Brent futures, the global oil benchmark, slipped 0.03 per cent to USD 58.94 per barrel.

Rupee rises 27 paise to 70.87 against USD in early trade

The Indian rupee appreciated by 27 paise to 70.87 against the US dollar in early trade on Tuesday as optimism about US-China trade talks and easing crude oil prices enthused investors. At the interbank foreign exchange, the rupee opened at 70.90, then gained further ground and touched a high of 70.87 against the US dollar, registering a rise of 27 paise over its previous close.

On Friday, the rupee had settled at 71.14 against the US dollar. Forex market was closed on Monday on account of assembly elections in Maharashtra. The domestic unit, however, could not hold on to the gains and was trading at 70.91 against the dollar at 0949 hrs.

Forex traders said investors were optimistic about the US-China trade talks after US President Donald Trump said that ‘phase 1’ China trade pact is on track for November.

Trump said that he expects to sign the partial deal on the sidelines of the Asia-Pacific Economic Cooperation summit in Chile next month when he meets with Chinese President Xi Jinping.

However, cautious opening in domestic equities weighed on the local unit.

Domestic bourses opened on a cautious note on Tuesday with benchmark indices Sensex trading 50.64 points lower at 39,247.74 and Nifty up 4.60 points at 11,666.45. The dollar index, which gauges the greenback’s strength against a basket of six currencies, fell by 0.02 per cent to 97.31.

Foreign institutional investors (FIIs) remained net buyers in the capital market, putting in Rs 36.56 crore on Friday, according to provisional exchange data. Brent crude futures, the global oil benchmark, was trading down 0.03 per cent at USD 58.94 per barrel. The 10-year government bond yield was at 6.54 per cent in morning trade.

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