Global cues and developments at the crisis-hit Infosys will dictate market sentiment in a holiday-shortened week ahead, say experts. Markets will be closed on Friday for 'Ganesh Chaturthi'.
Vishal Sikka's surprise resignation as Infosys CEO on Friday threw markets off-track as the Sensex careened off 271 points. Infosys was the biggest loser in the Sensex pack, sinking 9.60%.
The stock will be in focus on Monday after the company's board on Saturday approved the share buyback plan of up to Rs 13,000 crore to reward shareholders. It will buy back 11.3 crore shares at Rs 1,150 apiece, returning cash to investors at almost 25% premium to the Friday's closing price of Rs 923.10, the Bengaluru-based company said in a stock exchange filing.
"A lack of participation and selling pressure in Nifty Bank, Pharma coupled with IT, due to Infosys, is what is keeping Nifty at lower levels. So any change in breadth of these sectors will play a crucial role for coming sessions to determine the trend," said Abnish Kumar, Technical Analyst, Aadya Trading and Investments.
Vinod Nair, Head of Research, Geojit Financial Services Ltd, said, "On the global front, investors were jittery on account of a terrorist attack in Europe which also dampened the sentiment."
BSE cautions market participants against unsolicited SMSes
Leading bourse BSE has asked market participants to exercise "greater caution" against unsolicited SMSes providing stock trading tips as regulators step up the vigil to prevent investors from being duped.
There are increasing instances of bulk SMSes being sent to investors and the general public, inducing them to invest in or purchase the stocks of certain listed companies, indicating target prices and giving fraudulent and misleading or false information.
Under Sebi regulations, investment advice and stock tips can only be given by investment advisors and certain other entities that are duly registered with the regulator. In a circular addressed to market participants, BSE has asked them "to exercise greater caution with respect to tips/ rumours circulated via various mediums while dealing in the securities listed on the exchange".