Sensex down 300 points on selling in heavyweights

New Delhi, May 3 BSE Sensex fell 300 points on Friday, amid selling in heavyweight stocks.

BSE Sensex was trading at 74,310 points, down 300 points.

Bharti Airtel is down more than 1 per cent. L&T, Tech Mahindra, Nestle India, Maruti, Infosys were also trading in the red. Bajaj Finance is up more than 4 per cent after RBI lifted restrictions on some of its products.

Several sectoral indices including technology, private banks, capital goods, real estate are trading in the red. IT stock Coforge is down more than 8 per cent.

Coforge also announced acquisition of Cigniti Tech, an assurance (testing) company. Management believes Cigniti complements Coforge’s verticals, geo footprint and client relationships, JM Financial Institutional Securities said in a report.

Coforge has done comprehensive audit (financial and forensic) of the target and finds comfort in scaled relationships and in-place contracts. “We estimate that at current price, the acquisition will be EPS accretive. Synergies are difficult to realise, especially in large acquisitions. But we are willing to give the benefit of doubt to Coforge’s clinical execution track-record,” the brokerage said.

V. K. Vijayakumar, Chief Investment Strategist, Geojit Financial Services said that global and domestic cues are positive for the markets. The decline in dollar index to 105.3, correction in the US 10-year bond yield to around 4.5 per cent and Brent crude below $84 will further strengthen the bulls. The strong pillar of support for this market is the strong buying by DIIs facilitated by the sustained flow of funds. This trend is unlikely to change anytime soon.

“RBI lifting restrictions on some of Bajaj Finance’s products is highly positive for the stock. Short covering in the stock has the potential to trigger a surge in the stock. Bank Nifty has further room to move up. Delivery-based buying in this segment is likely to continue," he said.

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