February 24, 2024

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Delighting finance buffs

Domestic markets down as gloomy Wipro outlook hits IT stocks

The NSE Nifty 50 index fell 0.93 per cent to 8,839.45 by 9:21 am, while the benchmark S&P BSE Sensex was down 1.07 per cent at 30,045.32.

Domestic stock markets opened negative as IT shares took a beating after Wipro flagged a hit from the Covid-19 pandemic. (Photo: Reuters)

HIGHLIGHTS

  • Indian stocks opened weaker on Thursday
  • Sensex was down over 200 points at 10 am
  • IT shares underperfromed in morning trade after Wipro flagged concerns over Covid-19

Indian stocks fell on Thursday as IT shares took a beating after Wipro Ltd flagged a hit from the novel coronavirus pandemic, while dour data from the United States and grim economic outlook for Asia further weighed on investor sentiment.

The NSE Nifty 50 index fell 0.93 per cent to 8,839.45 by 9:21 am, while the benchmark S&P BSE Sensex was down 1.07 per cent at 30,045.32.

Software services firm Wipro on Wednesday said it would not forecast revenue for the next quarter because of the uncertain market conditions caused by the pandemic, and warned of “huge pressure” on margins in the fiscal first quarter to end-June.

Wipro shares fell as much as 3.5 per cent on Thursday and rival Infosys Ltd slid 3.6 per cent, while Tata Consultancy Services Ltd dropped 2.3 per cent ahead of its earnings due later in the day.

Asian stock markets were also under pressure after data showed US retail sales fell the most on record last month, and manufacturing output fell by the most in 74 years, raising fears of a deep recession.

The International Monetary Fund said growth in Asia would grind to zero for the first time in 60 years in 2020.

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