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Markets open in the red; Infosys stock under pressure

September 12th, 2008

Friday, September 12, 2008 10:52:44 AM IST

The markets are having yet another opening in the red. NSE Nifty is trading at 4265 levels while BSE Sensex is down by 135-odd points and is trading at 14188 levels.

CNX IT is down 2.97% after the recent volatility in the currency rates. Bank Nifty is down 1.2%. CNX 100 is down 0.59% while CNX 500 is down 0.55%

Top Nifty gainers so far include Maruti, National Aluminium, SAIL, M&M, ITC, ONGC, Power Grid, BHEL, Ambuja Cement and Tata Steel. Top Nifty losers include Infosys (down over 5.3%), Satyam, Bharti Airtel (both down over 3%), DLF, TCS, ICICI Bank (all down over 3%), Wipro, HCL Tech, SBI and Grasim (all down over 1.5%).

BSE Midcap and Smallcap indices are marginally in the red. IT, Realty, Bankex sectoral indices are in the red.

Infosys opened the day at 1753.00 and saw a high of 1753.00 and low of 1647.00 today and is trading at 1657.00. The script closed at 1750.65 yesterday on the Nifty.

Infosys stock is under pressure after a US agency was reporting that Infosys US Dollar reported numbers would require a review after the US Dollar appreciated over European currencies such as the Pound and Euro. Infosys CFO is on a leading business television channel saying that they might have an impact but might not warrant a review at the middle of the quarter and said that the reports are speculative. Infosys has about 28 - 30% of its revenues from non-USD currencies and because of the sudden appreciation of the USD over European and other Asian countries, export service incentive industries having a global presence such as the IT and Pharama are caught into a tangle of currency fluctuations.

1 U.S. dollar = 45.4607 Indian Rupees
1 U.S. dollar = 106.5757 Japanese Yens
1 U.S. dollar = 0.7174 Euros
1 Ounce Gold = $751.80
1 Barrel Crude Oil = $101.36

Entry Filed under: Equity Markets, IT & ITes, Opening trade