why indian nifty futures down january 12 2012

why indian nifty futures down january 12 2012 ; The National Stock Exchange's Nifty slipped closer to important support level as wary investors booked profits after November Index of Industrial Production and food inflation data were released.

Lower revenue guidance from Infosys Technologies pulled down other IT majors like Tata Consultancy Services and Wipro as well.

The IIP showed a growth of 5.9 per cent against - 5.1 per cent a month ago. According to analysts, the Reserve Bank of India may not go ahead with CRR cut at its next policy meet.

Food inflation for week ended December 31 was at -2.9 per cent vs - 3.36 per cent a week ago. Primary Articles Index was edged higher to 0.51 per cent from 0.1 per cnet a week ago.

At 1:15 pm; the Nifty was at 4818.90, down 42.05 points or 0.87 per cent. The broader index touched a high of 4869.20 and low of 4803.90 intraday.

The Bombay Stock Exchange's Sensex was at 16008.02, down 167.84 points or 1.04 per cent. It touched a high of 16178.58 and low of 15962.59 in trade so far.

Meanwhile, the shares of IT companies continued to remain under pressure after Infosys Technologies' lowered its revenue growth guidance while reporting December quarter results.

Infosys' consolidated net profit rose to Rs 23.72 billion ($457 million) in the third quarter ended Dec. 31 from Rs 17.8 billion a year ago. Revenue rose 30.8 per cent to Rs 92.98 billion.

It forecast dollar revenue growth of 16.4 per cent for the fiscal year to March 31, down from 17.1 per cent to 19.1 per cent projected in October.

"Q4FY12 quarter dollar revenue outlook is weak (0-0.2%QoQ to USD1,806-1,810mn) and the focus will shift to growth prospects in FY13 based on expectations of clients' budgets for the next year. However, weak rupee and moderate growth in the range of 11-13%YoY in FY13 is likely to reflect EPS in the range of Rs 168-170. At the CMP, the stock is trading at PER multiple of 16.7x FY13E EPS. Maintain 'Accumulate' rating on the stock," said PINC report.

Selling pressure was also see in the broader markets as well. BSE Midcap Index was up 0.30 per cent and BSE Smallcap Index moved 0.12 per cent higher.

Amongst the sectoral indices, BSE IT Index was down 5.70 per cent, BSE Oil&gas Index slipped 0.82 per cent and BSE Capital Goods Index declined 0.07 per cent. BSE Power Index was up 0.89 per cent, BSE Metal Index moved 0.71 per cent higher and BSE Bankex gained 0.68 per cent.

Infosys Technologies (-7.65%), Tata Consultancy Services (-4.64%), Wipro (-3.10%), HCL Technologies (-2.41%), Cairn India (-2.06%) and Reliance Industries (-1.33%) led the Nifty losers pack.

IDFC (4.18%), Siemens (2.64%), Sesa Goa (2.26%), Punjab National Bank (2.17%) and Reliance Power (1.66%) were the major gainers. For the latest updates on the stock market, visit Stock Market Today For the latest updates PRESS CTR + D or visit Stock Market news Today

Related Post: