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Sensex loses 300 points as Infosys crashes by 21%

IT major Infosys Ltd, founded by N  R Narayana Murthy who is now its chairman emeritus, saw its shares plunge by 21.33 per cent to Rs 2,295.45 on Friday after a lower-than-expected revenue outlook for 2013-14 and disappointing Q4 earnings. The crash, which marked Infosys’ worst single-day drop in 10 years, pulled the BSE Sensex down by 299.64 points (1.62 per cent) to 18,242.56.

It also ensured that, sectorally, the IT index ended the day as the top loser, with a decline of 11.09 per cent to 6,040.48. The NSE index Nifty too lost 65.45 points (1.17 per cent) to end the day at 5,528.55.

‘The main reason for the decline in benchmark indices was the big fall in share price of Infosys,’ said Inventure Growth and Securities CMD Nagji K Rita.

The negative effect of Infosys was so devastating that the markets simply ignored sentimentally positive macroeconomic data like a February IIP growth of 0.6 per cent against street expectations of a marginal decline and fall in consumer price index-based inflation to 10.39 per cent in March from 10.91% in February.
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