The Sensex fell 1.5% or 256.59 points to close at 17232.55, driven by negative market sentiment following disappointing Infosys results and a downward revision of its guidance. Despite a higher-than-expected industrial production growth of 2.4%, the market breadth was negative, with significantly more declining stocks than advancers. Key losers included Infosys, which dropped 8.4%, along with other major companies, while real estate and oil & gas sectors were the few gainers.

1. Sensex crashes 1.5% on Infy guidance
Market Summary
12-Jul-2012
Markets began on the subdued note tracking negative global cues and disappointing Infosys results. Most of the global indices were
showing negative signs. Also, 33% growth in Infy’s Q1 Net fell short of street expectation. Additionally the company’s
downward revision of its annual guidance and decision to not disclose quarterly sales guidance this quarter, for the first time ever did
not go well with the investors.
Even better than the anticipated index of industrial production (IIP) growth of 2.4% could not turn around the adverse market
sentiments that caused the Sensex to lose over 250 points.
India’s industrial production, as measured by the index of industrial production (IIP), grew at higher than anticipated rate of 2.4% in
May as per the government data vs analyst’s estimation of 1.8% as per Reuter Poll. The IIP growth for April is revised downwards
to -0.9% from 0.1% earlier on y-o-y basis.
Infy Result: For the period while the Net Sales increased by 29.02%, Net Profit grown by 33.25% and thereby NPM improved to 24.74%
as compared to 23.95% on y-o-y basis. The stock crashed by 8.4% on NSE. (Detailed Result)
Coming back to markets, the market breadth on the BSE closed in negative. Advances and declining stocks were in a ratio of
1115:1649 while 127 scrips remained unmoved.
The BSE Sensex ended at 17232.55, down 256.59 points or 1.47%. The 30 share index touched a high and a low of 17329.46 and
17181.17 respectively. 9 stocks advanced against 21 declining ones on the benchmark index.
The S&P CNX Nifty lost 71.05 points or 1.34% to settle at 5235.25. The index touched high and low of 5261.75 and 5217.70
respectively. 15 stocks advanced against 35 declining ones on the index.
Sensex Nifty
The BSE Mid-cap index moved down to 6261.89 and lost 0.59% while Small-cap index hammered down by 0.66% to 6744.53.
The broader BSE 500 index decreased to 6677.17 (down 1.08%) and S&P CNX 500 index declined to 4164.60 (down 1.09%).
The volatility as denoted by INDIA VIX gained 1.74% at 18.71 from its previous close of 18.39 on Wednesday.
Sectors in action
On the BSE Sectorial front, Real Estate (up 0.94%) and Oil & Gas (up 0.27%) were the top gainers.
Information Technology (down 5.11%), Consumer Durables (down 1.78%) and Capital Goods (down 1.45%) were the top losers.
The Angels and the Devils
Oil And Natural Gas Corp Ltd (up 1.42%), GAIL (India) Limited (up 1.05%), Hero MotoCorp Ltd. (up 0.88%), T Power Company
ata
Limited (up 0.60%) and Cipla Limited (up 0.54%) were the top gainers on the Sensex.
Infosys Limited (down 8.15%), Wipro Ltd (down 3.98%), Bharti Airtel Limited (down 2.92%), Mahindra And Mahindra Limited (down
2.09%) and Tata Motors Limited (down 1.97%) were the top losers on the Sensex.
Benchmark Drivers
Infosys Limited (-116.81 points), Larsen And T oubro Limited (-16.44 points), HDFC Bank (-16.15 points), T Consultancy Services
ata
Limited (-15.86 points) and Bharti Airtel Limited (-14.55 points) were the major Sensex drivers today.
On the other end Infosys Limited (-31.26 points), Larsen And T oubro Limited (-4.84 points), T Consultancy Services Limited (-4.06
ata
points), HDFC Bank (-4.03 points) and Bharti Airtel Limited (-3.89 points) were the major Nifty movers today.
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