FINAL TRADE: Indices snap 6-day gaining streak as Infosys cuts revenue guidance; Nifty settles at 19,745

Stock market today: After rising for six straight sessions, the bulls lost strength on Friday (July 21) as a sharp cut in revenue guidance by Infosys and HUL's soft Q1 numbers dented sentiment. As a result, benchmark indices settled with over 1 per cent cuts. The Nifty IT and FMCG dragged the headline indices down. At close, the 30-share index of the BSE stood at 66,684.26, down 887.64 points, or 1.31 per cent while the NSE's Nifty closed at 19,745, down 234.15 points, or 1.15 per cent.

Commenting on the fall in IT stocks, Sumit Pokharna, Research Analyst and Vice President at Kotak Securities Ltd, said, "Infosys’ share price is under deep pressure due to revenue growth guidance cut to 1-3.5 per cent from 4-7 per cent. The guidance cut was sharp. The magnitude of the cut was all the more surprising given mega-deal announcements and a strong pipeline."

"The guidance cut is either on account of the sharp deterioration in discretionary spending or compensating for a tad aggressive guidance earlier, or both. Management attributed it to a cut in discretionary spending and delays in large deal closures and ramp-ups. We believe that the weaker outlook is not Infosys-specific and captures a broader slowdown, especially in key verticals, i.e., banking and telecom," Pokharna added.

Broader market 

The Nifty Midcap 100 ended lower by 0.36 per cent, conversely, the Smallcap 100 ended on a positive note, up by 0.72 per cent. 

Sectoral watch 

Nifty Bank settled 0.24  per cent or 111.70 points, lower at 46,075.20. Nifty IT and FMCG dragged the headline index. Nifty IT closed over 4 per cent lower, and FMCG closed 1 per cent lower. Nifty Metals and Pharma also settled lower.

Buzzing stocks 

Tanla Platforms closed 13 per cent higher on BSE post-results. Atul Auto ended over 3 per cent higher. Ashok Leyland ended over 3 per cent higher post-Q1 results announcement. Larsen and Toubro (L&T) ended over 3 per cent higher after it announced it would consider a buyback of shares.

Conversely, Among IT stocks, Infosys ended over 8 per cent lower after the company cut its revenue guidance; Persistent Systems ended over 5 per cent lower; Coforge, HCL Tech, and Wipro ended over 3 per cent lower; TCS, Tech Mahindra closed over 2 per cent lower; LTIMindtree and L&T Technology Services settled nearly 1 per cent lower. 

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