Sensex opens below 15,000 mark to slip

Mumbai, July 11: The Bombay Stock Exchange (BSE) Sensex slipped further into the red by 57.11 points to touch 14,952.77 at the close of the first session, after opening weaker at 14,948.15 from it's previous close of 15,009.88, on account of weakness in information technology (IT) pivotals.

The BSE IT index lost 2.74 per cent to 4,899.08, and was the top loser among the sectoral indices.

''IT scrips have remained weak after IT bellwether Infosys Technologies today cut its FY 2008 earning per share (EPS) and revenue guidance in rupee terms while announcing their first quarterly Q1 June 2007 results,'' market analysts observed.

Among the broader markets, the National Stock Exchange (NSE) Nifty Index also shaved off around 9 points to sink to 4,397.45 after opening weaker at 4,403.80 from it's previous close of 4,406.05.

The total turnover on the BSE amounted to Rs 2,030 crore. Among the Sensex pack, 16 advanced while the rest declined.

''IT pivotals were trading weak. Four of the top five losers from the Sensex were IT pivotals. Infosys Technologies slipped 3.41 per cent to Rs 1,951, and was the top loser among the Sensex constituents,'' traders said.

Market analysts said that the company has revised upwards its EPS guidance for FY 2008 in dollar terms to a growth of 28.4 per cent to 29.7 per cent compared to the earlier guidance of 25.7 per cent to 27.7 per cent growth. It has also slightly raised revenue guidance in dollar terms to 29 per cent to 31 per cent, from the earlier guidance of a growth of between 28 per cent to 30 per cent.

However, experts pointed out that the company has cut EPS guidance in rupee terms to a growth of 15.6 per cent to 16.8 per cent compared to the earlier guidance of 20 per cent to 22 per cent growth. It has also reduced the revenue guidance in rupee terms to 16.9 per cent to 18.3 per cent, from the earlier guidance of a growth of 22.6 per cent to 24.6 per cent.

Infosys' consolidated net profit as per Indian GAAP was down 5.6 per cent to Rs 1079 crore in Q1 June 2007, from Rs 1,144 crore in Q4 March 2007.

The revenue was almost unchanged at Rs 3,773 crore in Q1 June 2007 compared to Rs 3,772 crore in Q4 March 2007.

The other laggards included TCS, Satyam Computers, Wipro, Tata Motors and Maruti Udyog.

The early winners were Reliance Energy (REL), ACC, Grasim, Meghmani Organics, MacMillan, Gati Corporation, GMR Industries, M&M Financial Services and Aptech.

Asian markets fell today. Japan's Nikkei plunged 0.91 per cent to 18,086.51. Hong Kong's Hang Seng was down 0.41 per cent at 22,791.79, Taiwan's Taiwan Weighted sliped 0.73 per cent at 9,315.91, Shanghai Composite was down 0.76 per cent to 3,823.59 and Singapore's Straits Times was down 0.25 per cent at 3,611.19.

US stocks fell sharply yesterday. The Dow Jones declined 148.27, or 1.09 per cent, to 13,501.70. The Standard&Poor's 500 index fell 21.73, or 1.42 per cent, to 1,510.12, while the Nasdaq Composite index lost 30.86, or 1.16 per cent, to 2,639.16.

UNI