Markets snap 3-week rally

Markets snap 3-week rally

Markets snap 3-week rally

Export data, bleak revenue forecast for Infosys dampen sentiment

Even as the BSE benchmark Sensex breached 22,000 level during the week for the first time in the history, it snapped 3-week of gaining string, tumbling by 110 points to end at 21,809.80 due to profit booking following tightening of norms by market regulator Sebi.

The Sensex breached the 22,000 mark for the first time on Monday on the back of continued overseas investor interest linked to upcoming polls.

Simultaneously, the NSE 50-share Nifty also touched a new intra-day peak of 6,562.20 during the week surpassing previous lifetime peak of 6,537.80 hit on last Friday.The buoyant mood was somehow disturbed by country’s exports which contracted 3.67 per cent in February to $25.68 billion.

A steep fall in software major Infosys also affected the market sentiment. Infosys crashed by 9.40 per cent after the company said it expected muted growth in January-March quarter and even probably in the next financial year.

“Buoyed by better than expected macro-economic data, equity benchmarks were seen making a positive start. However, gains remained capped as some cautiousness crept in the market as Sebi has tightened norms to prevent money laundering through capital markets,” President, Retail Distribution, Religare Securities, Jayant Manglik said.

Meanwhile, retail inflation eased to 25-month low of 8.1 per cent in February and industrial growth registered a modest growth of 0.1 per cent in January. WPI inflation also eased to nine-month low of 4.68 per cent in February.

It had gained by 1,552.97 points or 7.62 points in the previous three weeks.The NSE 50-share Nifty also dropped by 22.45 points or 0.34 per cent to finish at 6,504.20. It had also gained by 478.30 points or 7.91 per cent in the previous three weeks.

Foreign institutional investors (FIIs), bought shares worth Rs 302.49 crore in the just ended week, including provisional data of March 14. Eighteen scrips out of the 30-share Sensex pack ended higher, while 12 others finished lower.