Sensex Plummets Over 500 Points, IT Stocks Remain Under Pressure

Asian markets were trading mixed; the Kospi, Nikkei, SET and Jakarta lost up to 2 per cent each, while the Hang Seng, Straits Times and Shanghai indices were trading in the green

Sensex Plummets Over 500 Points,  IT Stocks Remain Under Pressure

HCL Tech's third quarter profit surged nearly 27 per cent to Rs 3,982 crore; stock fell over 2 per cent

The domestic stock markets widened their losses in noon trading due to a weak opening across the European bourses and mixed trends from Asia. At 2:10 pm, the BSE Sensex was trading near the lows of the day at 49,932.79, lower by 650.51 points or 1.23 per cent and NSE Nifty was at 14,416.35, down 179.15 points or 1.21 per cent. The broader markets are also witnessing selling pressure; the BSE Midcap index is down 1.6 per cent at 18,832.66 and BSE Smallcap index has shed 1.18 per cent at 18,658.60.

There was red across the board in Europe, with the DAX, CAC and FTSE shedding around half a per cent each. Asian markets were trading mixed; the Kospi, Nikkei, SET and Jakarta lost up to 2 per cent each, while the Hang Seng, Straits Times and Shanghai indices were trading in the green.

On the stock-specific front, information technology stocks continued to encounter selling pressure. Tech Mahindra dived by 4.2 per cent to Rs 1,007.50 to top the loser's charts on the BSE. HCL Tech declined by 2.5 per cent to Rs 1001.50 although the company's third quarter profit surged nearly 27 per cent to Rs 3,982 crore. Infosys, Wipro and TCS were also trading weak up to 2 per cent each. ONGC, Hindalco and BPCL were the other significant losers among BSE stocks.

On the other hand, Tata Motors, Bharti Airtel and ITC had gained up to 4 per cent each on the BSE. In fact, Tata Motors has now rallied for 11 straight days to hit 28-month high on the BSE Sensex.

The BSE market breadth was weak. Out of 3,095 stocks traded on the BSE, there were 874 advancing stocks as against 2086 declines.