Shares of Indian Tech Companies Suffered Serious Losses
Indian shares suffered tremendous losses on the first day of the week, hammered by losses in IT stocks after Infosys dropped 9% on missing March-quarter profit estimates, while inflation concerns globally also weighed on investors’ sentiment.
As of 04:45 GMT, the NSE Nifty 50 index declined 1.89% to 17,142.50. The S&P BSE Sensex dropped 2.15% to 57,089.44. In a holiday truncated week, both of them logged weekly losses of more than 1.5% each, last week.
Shares of Infosys fell 9.1%. As a result, shares of top software services providers declined to the lowest point in eight months.
Its consolidated net profit for the March quarter was 56.86 billion rupees ($744.24 million), lower than analysts’ expectation of 59.80 billion rupees.
That dragged the Nifty’s IT sub-index down more than 4%, making the Nifty’s IT sub-index the biggest decliner among major sub-indexes.
Infosys is not the only company that missed expectations. Last week, another major Indian company Tata Consultancy Services also slightly missed estimates. The company’s shares dropped 3.5% to a one-month low on Monday.
Apart from IT stocks, the country’s top private-sector lender HDFC Bank extended losses to an eighth session, declining 3.5% after HDFC Bank posted March quarter results over the weekend.
Its net interest margin, a key measure of profitability, shrank due to a rise in the share of corporate loans and slower growth in credit cards and auto loans.
Shares of Fast Retailing and the Nikkei 225
In Japan, the Nikkei 225 declined 1.08% to 26,799.71 as shares of Fast Retailing plunged 1.25%. The Topix index fell 0.86% to close at 1,880.08.
Mainland Chinese stocks were mixed on Monday. The Shanghai composite dropped 0.49% to 3,195.52. The Shenzhen component fell 0.368% to end its trading day at 11,691.47.
The world’s second-largest economy saw faster-than-expected GDP growth in the first quarter, data released by the National Bureau of Statistics showed on Monday. First-quarter GDP in the People’s Republic of China jumped 4.8%.
In South Korea, the Kospi fell 0.11% to 2,693.21.
