Infosys ends market's winning run; IT giant sees highest fall in 2 years

A fall in Infosys shares ended a three-day winning streak for Indian markets. The benchmark Sensex on the BSE fell 271 points or 0.8 per cent to close at 31,524. The Nifty 50 of the National Stock Exchange closed 66.7 points or 0.7 per cent to 9,873.

Shares of Infosys closed at Rs 923, down Rs 98 or 9.6 per cent. This is the highest single-day fall for the information technology giant in a little more than two years. It is an index heavyweight and the shares opened under selling pressure after chief executive officer Vishal Sikka said he'd quit. The stock fell as much as 13 per cent, leading the Sensex to fall 420 points. However, the markets staged a comeback in the last two hours of trading.

Of the 271 points fall in the Sensex, 206 points were on account of Infosys.

Interestingly, the broader markets outperformed the benchmark indices. The BSE mid-cap and small-cap indices closed 0.1 per cent and 0.5 per cent down, respectively. However, the market breadth remained largely negative, with 994 stocks advancing against 1,543 posting a decline on the BSE.

Sun Pharmaceutical and NTPC shares, which fell 3.8 per cent and two per cent, were among the other Sensex stocks that fell the most on Friday. On the other hand, shares of Tata Cosultancy Services, a rival of Infosys, went up 1.2 per cent. Hindustan Unilever was the biggest gainer in the index, with upward movement of 2.1 per cent. Foreign portfolio investors sold equities worth Rs 2,182 crore, while domestic institutions made net purchases worth Rs 585 crore, from provisional BSE data.

The overall global sentiment also remained subdued on Friday, with Hong Kong's Hang Seng and Japan's Nikkei 225 closing a little more than one per cent lower. European markets opened 0.5 per cent to one per cent lower.

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