Mumbai: Stock markets on Thursday 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 percent 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 percent. 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 percent at 7,649.25. It had slipped by 74.50 points or 0.96 percent 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 percent from 16.5 percent 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 percent and 1.56 percent respectively. The sectoral BSE-IT and BSE-Teck indices were the biggest lowers, dropping by 1.27 percent and 1.14 percent 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 percent.
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.
Key benchmark indices China, Hong Kong, Singapore, South Korea and Taiwan moved down by 0.14 percent to 1.34 percent while Japan's Nikkei moved up by 0.48 percent.
In Europe, markets were also trading lower before the European Central Bank decides monetary policy today.
Key indices in France, Germany and the UK eased by 0.15 percent to 0.39 percent.
Jignesh Chaudhary, Head of Research, Veracity Broking Services said: "Indian stocks traded weak taking cues from global sell-off as growing tension in Ukraine created negative sentiments in the market. Also, investors fear that US Federal Reserve will raise interest rates next year for the first time since 2006."
Turning to the local market, 16 scrips out of the 30-share Sensex pack ended lower while 14 closed higher.
Besides Infosys and TCS, other major Sensex losers were Hindalco (1.25 percent), Sesa Sterlite (1.18 percent), Tata Motors (1.16 percent), Tata Power (0.73 percent), Gail India (0.68 percent), HDFC (0.66 percent), HUL (0.64 percent) and Axis Bank (0.53 percent).
However, Tata Steel moved up by 0.96 percent, followed by ONGC 0.88 percent, M&M 0.81 percent, Coal India 0.71 percent, SBI 0.43 percent and Maruti Suzuki 0.38 percent.
Among the S&P BSE sectoral indices, IT fell by 1.27 percent, followed by Teck 1.14 percent, Realty 0.34 percent and Power 0.31 percent.
Mid-cap and small-cap indices declined by 0.55 percent and 0.53 percent respectively.
Market breadth was negative as 1,631 stocks closed with losses, 1,304 ended with gains and 117 ruled steady. Total turnover fell to Rs 2,680.64 crore from Rs 3,041.83 crore yesterday.
