(Updates levels, adds analysts' comments)
By Bharath Rajeswaran
BENGALURU, April 17 (Reuters) - Indian shares sank more
than 1% on Monday after Infosys tumbled 15% and sparked a
selloff in IT stocks following the country's No. 2 IT services
exporter's weak results and forecast.
The Nifty 50 was down 1.04% at 17,644.70 as of 10:31
a.m. IST, while the S&P BSE Sensex lost 1.20% to
59,716.18. The slide comes after the two indexes logged a
winning steak for the past nine sessions in a row.
Infosys was down 11.5% and the top drag on the
Nifty 50 after it forecast revenue growth hitting a six-year low
in fiscal 2024 as U.S. and European clients deferring spending.
Eight of the 13 major sectoral indexes declined. The IT
index sank 6.5% and was on track for its biggest
one-day loss since March 2020. All the 10 constituents were down
between 2.4% and 15%.
HCLTech , the only IT company due to report results
this week, fell 4.8%. Tech Mahindra slid 6.6%, also
weighed down by a Citigroup rating cut to "sell" on near-term
risks and challenges.
The market's decline is expected, after the strength over
the last 10 sessions and due to weak cues from global markets,
said two analysts.
They expect the Nifty to find support in the 17,200-17,600
range and resistance at 18,200.
Global equities were subdued after data showing resilient
U.S. retail sales bumped up the odds of the Federal Reserve
raising interest rates by 25 basis points in May. However, the steep drop in domestic stocks was mostly
restricted to large-cap companies. The Nifty midcap 100 index and Nifty smallcap 100 were both off
about 0.2%.
Among other stocks, Tata Motors rose at the open
after saying it would hike prices of passenger vehicle, while
HDFC Bank hit a new 52-week high after India's largest
private lender posted a jump quarterly profit.
Both stocks gave up gains to trade down 0.4% and 1.9%,
respectively.
(Reporting by Bharath Rajeswaran in Bengaluru; Editing by
Janane Venkatraman and Savio D'Souza)
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