Sensex Edges Lower, Nifty Hovers Around 8,650; Infosys Falls 3%

9:27 a.m.: Sensex edged lower in opening deals while 50-share Nifty was hovering around its crucial psychological level of 8,650 on the back of selling in index heavyweights like Infosys, Tata Motors, Larsen & Toubro and Sun Pharma.


The Sensex fell as much as 62 points to hit low of 28,091 and Nifty declined 25 points to 8,647.

Infosys was the top Nifty loser, the stock fell 3 per cent to Rs 1,035 after RBS cancelled a 5-year order for launching new bank. Infosys was technology partner for the new bank and order loss could hit annual revenue by $40-50 million. EPS estimates could be cut by 1-2 per cent and Infosys will cut 3,000 jobs over the next few months.
Tata Motors, Tech Mahindra, Larsen & Toubro, BHEL, Zee Entertainment, Bharti Airtel, HDFC, Hero MotoCorp and Bosch Ltd were also among the laggards.

On the other hand, Power Grid, BPCL, Yes Bank, Hindalco, HCL Tech, ITC, Cipla, Lupin and Adani Ports were among the gainers.

On the sectoral front, realty, IT auto, capital goods and consumer durable stocks were witnessing selling pressure while buying was seen in select banking, power and FMCG shares.

The broader markets were trading flat. The BSE mid-cap index jumped 0.18 per cent and the small-cap index climbed 0.03 per cent.

8:00 a.m.: Sensex and Nifty are set to open on a flat note in trades today tracking subdued trading of Nifty futures on the Singapore Stock Exchange.

The Nifty futures traded on the Singapore Exchange traded 0.07 per cent or 6 points lower at 8,710.

Meanwhile, most of the other Asian share markets were also trading with a negative bias. Japan's Nikkei was 0.27 per cent, Taiwan Weighted fell 0.41 per cent and Shanghai Composite was down 0.07 per cent.

Overnight, all three major U.S. stock indexes ended at all-time highs on Monday, extending their record-setting climb of the past few weeks as the dollar's weakness boosted commodity-related shares.

The S&P 500's earnings recession that began in the third quarter of 2015 is on track to end in the fourth quarter. Estimates show profit growth of 8.3 percent for S&P 500 earnings in the fourth quarter, Thomson Reuters data shows.

The Dow Jones industrial average ended up 59.58 points, or 0.32 percent, at 18,636.05, the S&P 500 gained 6.1 points, or 0.28 percent, to 2,190.15 and the Nasdaq Composite added 29.12 points, or 0.56 percent, to 5,262.02.

Back home, foreign institutional investors bought shares worth Rs 1,203.71 crore while domestic investors sold shares worth Rs 392.47 crore on Friday.

Infosys will be on investors' radar after RBS canceled a 5-year order for launching new bank. Infosys was technology partner for the new bank and order loss could hit annual revenue by $40-50 million. EPS estimates could be cut by 1-2 per cent and Infosys will cut 3,000 jobs over the next few months.