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Global cues, Infosys turmoil to dictate market trend: experts

LiveMint logoLiveMint 20-08-2017 PTI

New Delhi: 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 Rs13,000 crore to reward shareholders. It will buyback 11.3 crore shares at Rs1,150 apiece, returning cash to investors at almost 25% premium to the Friday’s closing price of Rs923.10, 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 the 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.”

Investors would also keep an eye on Jackson Hole economic policy symposium later this week. “An important event lined up this week is the jamboree in Jackson Hole, Wyoming,” said V.K. Sharma, head PCG, HDFC Securities.

Over the last week, both Sensex and Nifty recorded gains of 311.09 points, or 0.99%, and 126.60 points, or 1.30%, respectively.

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