Financial Daily from THE HINDU group of publications
Wednesday, Apr 20, 2005
Markets - Stocks
TCS triggers fall Sensex sheds more in volatile trading
Mumbai , April 19
STOCK markets shifted momentum mid-trade, after TCS announced results, to close with a loss of 21.92 points.
The bourses opened strong on Tuesday with many counters witnessing value buying. However, when TCS revenue and profit announcements were found to be well below market expectations, sentiment turned negative.
Technology stocks were the worst affected. Dealers say that investors are jittery about the sector and expect more earnings surprises.
The Sensex shed 148.33 points intra-day. The 30-stock benchmark index closed trade at 6,134.86. The Nifty shed 12.9 points to end below the 1,700-level at 1,693.55. It had touched an intra-day high of 1,733.55.
Dealers say that though TCS was the trigger for the collapse in the market sentiment today, investors were selling when the market had reached the day's high levels. Markets had opened in the green, as investors were keen to make good value purchases. However, with the current volatility and uncertainly about the movement of the market, investors are getting jittery at 6,250-levels on the Sensex.
"Because of the unpredictability of the market in the last few trading sessions, any bad news gathers the magnitude of a calamity. Even though TCS results were disappointing, it did not call for the hammering that the entire market received," said the head of equities of a domestic broking house.
BSE's IT index lost 2.38 per cent during Tuesday's trade, with TCS dragging down all the other technology majors, including Wipro and Satyam.
While TCS was down 8.37 per cent, losing Rs 110.45 to close at Rs 1,209.75, Wipro shed 3.3 per cent to close at Rs 576.35 and Satyam lost 5.61 per cent and ended trade at Rs 367.85.
Banking and steel stocks continued their poor performance. Cement sector witnessed some buying.
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