Sensex Slumps Amid Global Selloff; Infosys Lifts Sentiments

The BSE Sensex and Nifty traded with over 1 per cent loss led by selling in high beta stocks like metal, auto and banks.

The metal index fell 3.3 per cent, while the auto index was down 2.5 per cent. Interest rate sensitive Bank Nifty also fell 1.3 per cent.

Defensive shares like FMCG also could not escape from selling pressure. The FMCG index was down 2.4 per cent. The Nifty heavy weight ITC fell over 3 per cent, while Hindustan Unilever was down 1.8 per cent.

Among the Nifty companies JSPL fell the most, down 6.43 per cent, Tata Motor traded lower by 5 per cent. Hindalco was down 4.6 per cent after gaining over 6 per cent yesterday. Tata Steel and Cairn India were among the other losers in Nifty, down over 3.5 per cent each.

Infosys gained over 7 per cent to hit a fresh 52-week high of Rs. 3,908 on earnings beat. India's second largest outsourcer, Infosys which kick started the earning season today also announced a bonus share issue in the ratio of one for one (Read). Infosys earnings turned positive for the entire IT sector. Investors were seen buying stocks in other IT companies as well. HCL Tech was up 2.4 per cent, while Tech Mahindra was up marginally.

The broader markets also came under selling pressure today. The CNX Midcap index was down 0.95 per cent. Bharat Forge and Bank of Maharashtra were the biggest losers in the index, down over 4.5 per cent each.

As of 2.40 p.m. Sensex was down 271 points at 26,366, while Nifty fell 1.03 per cent to 7,878. Out of the 50 companies in Nifty, 39 shares traded with losses while 11 shares were in green.

European markets traded with sharp cuts today. CAC 40 index was down 1.34 per cent, while the FTSE 100 traded lower by 1.1 per cent.