As the sharp cut in revenue guidance by one of the technology experts was seen as an industry-wide phenomenon, other stocks in the sector also closed with heavy losses. As a result, the IT index on BSE closed down 4.4%. on NSE, smelly The BSE also closed at 19,745 points, down 234 points ie 1.2%. Heavy selling in IT pack as well as index-heavyweights decline Reliance Industries Exchange data showed that the two major indices also took a hit.
Infosys share price was under pressure due to sharp cut in revenue growth guidance. The magnitude of the cuts was even more surprising after the recent announcement of mega-deals and a robust project execution pipeline, Sumit Pokharna Kotak Securities Said.
BSE data showed that foreign funds, which were net buyers for the last several months, turned net sellers on Friday with net outflows figure around Rs 2,000 crore. On the other hand, domestic funds remained net buyers to the tune of Rs 1,291 crore.
Investors lost around Rs 1.8 lakh crore due to the day’s fall and BSE’s market capitalization now stands at Rs 301.6 lakh crore.
In the US, technology stocks edged lower on Friday after a potential rally. The S&P 500 and Nasdaq were little changed after early gains in an effort to recoup losses in the previous session on disappointing results from Netflix.
The rupee depreciated 5 paise to close at 81.94 against the US dollar on Friday, dragged by gains in the American currency and firming crude prices in global markets.