Nifty below 5700; Infosys sinks 7% on disappointing outlook

Indian shares opened marginally lower on Friday following disappointing outlook for FY13 by the country's second largest software services exporter Infosys.

The 30-share BSE Sensex fell 89.84 points to 18,714.91 and the 50-share NSE Nifty slipped 24.75 points to 5,683.30.

Shares of software bellwether Infosys plunged nearly 8 percent after the company revised its full year guidance downward, though the second quarter numbers were in-line with expectations.

Net profit rose by 3.5 percent quarter-on-quarter to Rs 2,369 crore and revenues went up by 2.52 percent to Rs 9,858 crore in the quarter ended September 2012. However, the company cut its earnings per share guidance for full year to Rs 160.61 a share from Rs 166.46 a share earlier and also reduced constant currency dollar revenues guidance to 5.7% versus 6%.

CFO V Balakrishnan will give up its position with effect from October 31, but he will continue to be a board member. Rajiv Bansal, who is currently a VP - Finance, will become new CFO.

Its rivals TCS and Wipro were down 0.7 percent and 1.5 percent, respectively.

Engineering conglomerate Larsen & Toubro and commercial vehicle maker Tata Motors lost 0.6 percent each.

Top lenders State Bank of India and ICICI Bank were marginally lower while their rival HDFC Bank rose 0.7 percent.

FMCG majors ITC and Hindustan Unilever gained 0.7 percent each.

Oil & gas producers Reliance Industries and ONGC were up 0.2-0.4 percent.

Bajaj Hindusthan and Balrampur Chini were up 1 percent ahead of report from Rangarajan committee on sugar decontrol today.

Advancing shares outnumbered declining by a ratio of 685 to 415 on the National Stock Exchange.