Why is market
crashing today?!
IT stocks slump,
Q4 earnings, other
key factors
Produced by: Harshita Tyagi
Designed by: Pragati
Snapping its longest winning streak in over two years, Sensex on Monday fell nearly 950 points as IT stocks slumped after Infosys missed all parameters in its Q4 report card.
Monday Mayhem
on Dalal Street
BSE Sensex slipped below 60,000 mark, while broader Nifty broke below the 17,600 level. IT major Infosys, whose shares crashed up to 12%, was the single largest drag on both the indices. Sensex had rallied over 2,800 points in the last nine days before crashing 1% today.
Nifty, Sensex crash 1%
Weaker-than-expected numbers by Infosys unleashed the bears on Dalal Street. Infosys share price fell around 12% and the ripple effect was seen on peers as well as the Nifty IT index which lost around 6.5%.
Infosys, other IT stocks drag
Index heavyweights HDFC twins were among the top contributors to Sensex's decline after the bank's Q4 profit and net interest income (NII) growth came in lower than expected. Both HDFC and HDFC Bank, which are due for a merger, slipped 2% each in early morning trade.
HDFC Bank Q4 results
As the March quarter earnings season led the bear attack, muted cues from global markets failed to support the downfall. Japan's Nikkei was trading flat, whole Australia's S&P/ASX 200 edged up 0.2%, South Korea's Kospi fell 0.2% and Hong Kong's Hang Seng added 0.2%.
Dull global cues
After the sharp 5% rally seen in Nifty and Sensex in the past nine trading sessions, traders took the opportunity to book profits on Monday. The buying in the previous sessions was led by FIIs.
Profit booking
According to analysts, technical charts show that the recent upmove was very steep without any breather, and momentum indicators had turned overbought. However, there is nothing that suggests suggest an outright reversal of uptrend, and upside trajectory may be expected to be reclaimed in due course, as long as 17,500 holds during consolidation.
Markets taking a breather
The 10-year US bond yield has crossed the 3.5% mark as data showed that the US economy is not slowing quickly enough to deter the Fed from raising interest rates. The two-year US bond yields rose 12 bps last week.
Rise in bond yields
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