Infosys pulls down Sensex as investors turn cautious
A broker trades on his computer terminal at a stock brokerage firm in India's commercial capital Mumbai on January 20. Photograph: (Reuters)
Indian shares ended lower on Monday as investors largely kept to the sidelines following a disappointing start to the earnings season last week after Infosys Ltd issued a lower-than-expected revenue guidance.
The Nifty closed down 0.13 per cent at 9,139.30, while the Sensex ended 0.16 per cent lower at 29,413.66.
Investors waited for positive corporate results after a disappointing start to the earnings season last week when Infosys Ltd issued a lower-than-expected revenue guidance.
Shares of Infosys, the country`s second-biggest software services exporter, were down 0.7 percent after falling 3.87 percent on Thursday. Markets were closed on Friday for a public holiday.
The weak guidance raised concerns about earnings, with Tata Consultancy Services Ltd, Yes Bank Ltd, and HDFC Bank Ltd due to report this week.
"With the earnings season having just begun, markets need to see some kind of confirmation that growth will come," said Saurabh Jain, assistant vice-president of research at SMC Global Securities.
"Broadly, markets are consolidating and are finding it difficult to sustain fresh highs, and profit-booking is coming in."