IT fell over 4%, with Infosys losing over 9% and dragging the markets down. The company, which reported a 10.9% rise in June-quarter profit post market hours on Thursday, halved its full-year revenue growth outlook, citing cuts in tech spending.
“The guidance cut from Infosys is a big shocker,” wrote three analysts from Kotak Institutional Equities. “The weaker outlook is not just Infosys-specific, but captures a broader slowdown in the sector in key verticals.”
Fast-moving consumer goods firm Hindustan Unilever lost over 2% after missing June-quarter profit view on higher costs.
The slide in domestic equities comes after six straight sessions of gains, in which the benchmarks scaled fresh record highs.
“The short-term texture of the market is overbought, hence we could see some profit booking at higher levels,” said Shrikant Chouhan, head of research (retail) at Kotak Securities.
Asian equities declined, following weakness in Wall Street overnight, as lacklustre earnings from Tesla and Netflix and concerns of a prolonged high-interest rate regime in the U.S. weighed on sentiment.
Among individual stocks, Larsen & Toubro gained over 2.5%. The company will consider a proposal for buyback of equity shares and payment of special dividends.
Union Bank of India jumped over 3%, pulling public sector banks up 0.8%, after posting higher June-quarter profit.