Infosys shares traded off the day's low, down over 5, but the stock cost the BSE Sensex over 60 index points. Infosys reported in line numbers for the fiscal second quarter ending September 2012, but other operating parameters like margins and guidance disappointed the Street.(Read: Infosys Q2 net up 24%)
The stock had plunged over 8 per cent in early trade but recovered after the company clarified that revenue growth forecast for fiscal year ending 2013 does not include the revenue from Lodestone Holding AG. (Read: Why shares plunged 8%)
Infosys pulled down the BSE IT index significantly lower. Among frontline IT stocks, Wipro was down 1.5 per cent lower, though TCS shares traded with over 1 per cent gains.
Infosys results overshadowed a higher than expected rise in August industrial output, which rose an annual 2.7 per cent, with the growth driven by consumer goods. That beat the most optimistic forecast. Manufacturing, which accounts for the bulk of industrial production and contributes about 15 per cent to overall GDP, rose 2.9 per cent in August from a year ago. (Read: IIP grows by 2.7 per cent; too early to celebrate, say analysts)
On the Nifty, 24 of the 50 stocks were higher. Cement stocks led the gains. ACC and Ambuja Cements were the top Nifty gainers, rising 3-4 per cent. Jaiprakash Associates and Grasim also saw strong buying interest.
On the broader BSE 500, realty major Unitech saw profit booking while wind turbine maker Suzlon Energy extended losses.
Shares in sugar companies witnessed gains after a government panel recommended complete decontrol of sugar. Balrampur Chini gained over 3 per cent while Bajaj Hindusthan traded 2 per cent higher. (Read: Rangarajan panel recommends lifting curbs on sugar sector)
Global markets were lacklustre. Asian markets closed mixed while European shares traded lower in early trade.
(With inputs from Thomson Reuters)