Infosys sends bulls berserk with reality check

Spread the love

By S Jha

New Delhi, July 21: The bourses were set on a dream run by TCS. The curtain was brought by Infosys. The two events took place in about a week and in between the bourses spurted on a dream run. When the curtain came down with the shock therapy delivered by Infosys through its pedestrian quarterly performance, Nifty tanked by over 230 points, and the index could not kiss the 20,000 mark, missing the milestone by a whisker.

Infosys went down by over eight per cent on Friday. The IT bellwether also sank the likes of Tech Mahindra, HCL Technology and Wipro. The pedestrian quarterly performances were also delivered by Coforge and Persistent System and both the scrips went into the claws of the bears.

Incidentally, Persistent Systems had delivered a dream quarterly result last time when the bulls guided the Pune-based IT firm to the record level above Rs 5000. But it could not live up to the expectations of the street and it was duly punished.

With the earning season now guiding the direction of the market, the Bank Nifty battled the bears firmly with aides from the PSU Banks – Sbi and Bank of Baroda, as well as Kotak Mahindra Bank. ICICI bank, which briefly touched the level of Rs 1000 on Friday, along with Kotak Mahindra Bank will be announcing their quarterly results on Saturday, which will show actions on the scrips on Monday.

United Spirits sizzled on Friday in the midst of the bears, as the liquor maker zoomed by over six per cent to break out from its 52-week high. The scrip showed strength throughout the session.

Larsen and Toubro, one of the most underrated construction behemoth, also sparkled after the news broke out that it had bagged an order of Rs 7,000 crores for the Ahmedabad-Mumbai High Speed Rail Project.

Ironically, L&T is also a major defence goods manufacturer, with tanks made by it showcased at the Gandhinagar Defence ExPo. But it is yet to show the run of other defence companies. However, L&T appears to have broken out of the narrow range above Rs 2650 level.

It may be recalled that the management of the L&T had recently said that they would focus on high technology areas. Rail Vikas Nigam Limited carried the action of the last day to Friday also, rising by over six per cent.

Newgen Software, a smallcap IT firm, is buzzing after delivering stellar quarterly result. It again gained over two per cent. Tanla Platform further extended the gains. Its competitor Route Mobile has recently been acquired by a foreign company.