Trent’s 12% Plunge Leads Sensex Lower as IT Stocks Cap Losses

Trent tumbled 12.42% on Tuesday after its June-quarter revenue missed analyst estimates, dragging the Sensex and Nifty lower and ending a four-day winning streak. The 30-share index closed down 104 points at 78,180.72. The Nifty fell 31.65 points to 24,398.70.

Profit-taking emerged in the latter half of the session, Vinod Nair, head of research at Geojit Investments, said. Weakness across Asian markets and caution ahead of the US Federal Reserve minutes weighed, he added.

The Trent miss was the day’s standout. Revenue fell short of expectations, sending the stock to its worst single-day drop in recent memory. The selloff spread to Adani Ports, Bharat Electronics, Larsen & Toubro, Reliance Industries and ICICI Bank.

IT stocks provided the counterweight. HCL Tech, Tech Mahindra, Infosys, Titan, Eternal and Tata Consultancy Services all rose. Infosys gained ahead of the June-quarter earnings season, continuing a sector recovery from earlier corrections. The stock carries an Alpha Score of 57, a neutral rating that reflects moderate momentum.

Foreign institutional investors bought equities worth Rs 243.03 crore on Monday, exchange data showed. That buying did not extend into Tuesday. Asian equities weakened. South Korea’s Kospi fell 4.91%. Japan’s Nikkei and China’s Shanghai Composite also ended lower.

The Fed is due to release minutes from its July meeting Wednesday. For Indian markets, the early IT earnings reports will test whether the sector’s rally can sustain.