BSE Sensex loses over 300 points

FE Team | Published: May 30, 2014 00:00:00 | Updated: November 30, 2026 06:01:00

MUMBAI, May 29 (Reuters): The Nifty posted its biggest daily decline in nearly four months and its third fall over the past four sessions on Thursday as Infosys slumped after its president resigned, while profit-taking continued to hit shares after record highs earlier this month. The Sensex also posted its biggest fall since February 3.
Sentiment was further dampened as foreign institutional investors sold shares, albeit at modest amounts, after strong buying earlier this year. Overseas funds sold shares worth a net $48.75 million on Wednesday, their fourth session of selling in five, provisional exchange data showed.
Losses accelerated in the afternoon as the monthly derivative contracts expired at the end of the session.
Analysts said markets would take a breather ahead of the Reserve Bank of India's policy review next week and ahead of policy announcements from Narendra Modi's government that will need to fulfil high expectations.
"We find this as a healthy correction. The election event is over and we have a stable government in place. I think, fresh position building will happen from next week as we have RBI policy and the parliament proceedings will start," said Suresh Parmar, head, institutional equities at KJMC Capital Markets.
"The undercurrent is still positive and we advise clients to get into good quality stocks at declines."
The Sensex fell 1.31 per cent to 24,234.15 points, its biggest fall since February 3.
The Nifty closed 1.28 per cent lower at 7,235.65 points, falling the most since February 13.
Infosys Ltd fell as much as 7.84 per cent, its biggest single-day fall since March after its president and board member BG Srinivas, seen by some investors as a candidate to take over as CEO, resigned.
Srinivas became the latest senior manager to leave India's second-largest software services exporter.
Companies whose earnings disappointed investors also tumbled during a heavy week of results. Hero MotoCorp fell 0.14 per cent after the motorcycle maker's January-March profit adjusted for other income lagged some analyst estimates.
Shares in Oil and Natural Gas Corp fell 2.63 per cent while Cipla Ltd closed 1.95 per cent lower, ahead of its earnings announcement later during the day.
Shares in Unitech fell as much as 4.8 per cent after posting a wider-than-expected 515.5-million-rupee ($8.76 million) loss in the January-March quarter.
Shares in Coal India Ltd fell 1.8 per cent after its March quarter earnings fell short of expectation.
Among the gainers, Hindaco Industries Ltd was up 1.43 per cent despite a 48-per cent fall in net profit as its operational numbers beat estimates, traders said.