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.
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.
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