IT stocks drag Sensex, Nifty down as markets fall for 2nd day

Stock markets today fell for the second straight session with the Sensex slipping over 76 points to 25,589.01 and the Nifty declining nearly 23 points to 7,649.25 on losses in domestic IT shares after global peer Cognizant cut its full-year sales growth forecast.
With over 1.5 per cent fall each, heavyweights Infosys and TCS lead the losses in both benchmark indices. Weak global cues also persisted as Asian markets mostly dipped as concerns over the European economy and international conflicts, including in Ukraine, grew, said brokers.
The BSE 30-share barometer resumed stable and later moved erratically in a range of 25,778.05 and 25,526.05 before settling at 25,589.01, a fall of 76.26 points or 0.30 per cent. Yesterday, it has plunged 242.74 points or 0.94 percent.

Similarly, the 50-issue CNX Nifty of the NSE also gyrated in a range of 7,708.95 and 7,630.40 before concluding down by 22.80 points or 0.30 per cent at 7,649.25. It had slipped by 74.50 points or 0.96 per cent in the previous session.
US-headquartered Cognizant, which has a large employee force in India, yesterday lowered its 2014 year revenue guidance to at least 14 per cent from 16.5 per cent earlier.
This sparked off worries IT sector may face challenges ahead. Infosys and TCS were the top losers from the Sensex with fall of 1.68 per cent and 1.56 per cent respectively. The sectoral BSE-IT and BSE-Teck indices were the biggest lowers, dropping by 1.27 per cent and 1.14 per cent respectively.

Banking, realty, power, capital goods, healthcare, metal and FMCG sector stocks also came under selling pressure.

Bucking the overall weak trend, shares of companies related to railways saw buying interest after the government yesterday approved FDI liberalisation in the sector.
Shares of some defence equipment makers initially moved up but succumbed to selling. The Cabinet yesterday cleared the proposal for raising FDI limit in defence to 49 per cent.
Second-line stocks were also on the selling list.
A mixed closing in the other Asian markets and a lower opening of European markets on signs of deepening Ukraine crisis also dampened trading sentiments, brokers said.

Meanwhile, Foreign portfolio Investors bought shares worth Rs 283.87 crore yesterday.