Sensex, Nifty decline in early trade; Infosys gains, Bajaj Auto sinks 9%

Benchmark stock market indices opened weaker on Thursday as volatility continues to disrupt the mood on Dalal Street. Shares of Bajaj Auto fell 9% due to weak outlook.
The S&P BSE Sensex was down 315.93 points to 81,185.43 at 9:52 am, while the NSE Nifty50 fell 143.15 points to trade at 24,828.15.
All the other broader market indices were trading in negative territory as volatility remained high during early trade.
The top five gainers on the Nifty50 were Infosys, Hindalco, Dr Reddy’s, Tech Mahindra and SBI.
On the other hand, the top losers were Bajaj Auto, Hero MotoCorp, Eicher Motors, M&M and Maruti.
Shares of Bajaj Auto were trading over 9% lower after the company’s weak outlook for overall motorcycle sales during the festive period.
In an analyst call on Wednesday, Executive Director Rakesh Sharma said he expects motorcycle sales during the early October-November festive season to grow just 1%-2%. That is lower than the industry’s expectation of at least 5%-6%.
Meanwhile, shares of Infosys rose 1.5% ahead of its Q2 results. Other IT stocks gained today, citing strong gains in the US markets due to strong corporate earnings.
Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said, “Dow reaching yet another record high and the resilience of the US economy coupled with impressive corporate earnings indicate the continuation of this bull rally in the mother market of the US.”
“With the Fed expected to continue the rate cut with another 25bp cut in the next policy meeting, S&P 500 has the potential to move past the 6,000 level bringing cheer to other equity markets,” he noted.
“In India the consolidation around Nifty 25,000 level is likely to be extended with bouts of FII selling and DII buying. The reemergence of outperformance of smallcaps driven by liquidity is again becoming a cause of concern,” he added.
“Coming days will witness lots of stock-specific action in response to Q2 results. Expect a positive response to results of Financials. IT stocks can be bought on dips.”