Market update: Sensex closes at 2-month low, Infosys falls

The Bombay Stock Exchange (BSE) Sensex on Thursday closed over 25 points lower in choppy trade with IT stocks led by Infosys recording losses, but oil & gas, PSU, metal and banking shares rose, avoiding a steeper fall in the index. Wednesday's closing level was the lowest for the Sensex in nearly two months.

After opening in the negative zone at 26,229.67, the 30-share barometer slipped further to touch an intra-day low of 26,150.09 on continued capital outflows and selling by retail investors, tracking weak cues from overseas markets.

Buying in select blue-chip stocks wiped off initial losses and the BSE index rose to the day's high of 26,338.31. It finally settled 25.18 points (or 0.10 per cent) lower than its previous close, at 26,246.79.

It had lost 358.54 points in the previous two sessions on negative domestic as well as global factors.

The broader National Stock Exchange (NSE) Nifty ended in red with a marginal fall of 9.70 point (or 0.12 per cent) at 7,842.70.

The 50-issue NSE index moved between 7,869.90 and 7,815.75 during the session on alternate bouts of buying and selling.

Brokers said sentiment was hit by persistent capital outflows, weak trends in global markets and the cut by by the International Monetary Fund (IMF) in its global economy growth forecast for next year to 3.8 per cent.

Participants were cautious ahead of the earnings season beginning later this week with Infosys posting July-September quarter results, brokers said.

The provisional data released by the stock exchanges showed that foreign portfolio investors (FPIs) sold shares worth a net Rs 332.84 crore on Tuesday.

Out of the 30 Sensex scrips, Cipla, Dr Reddy, Hero MotoCorp, Sun Pharma, TCS and Wipro fell, while 19 others ended higher. Hindustan Unilever ended flat.

IT services major, Infosys plunged 4.70 per cent to Rs 3,650.20 a piece amidst reports that global financial services major Citigroup has downgraded the stock to 'neutral' from 'buy'. The stock dragged the BSE IT sector index by 3.44 per cent.

Healthcare index fell 3.27 per cent and Teck index by 2.83 per cent.

Bucking the trend, Oil & Gas index rose 1.69 per cent as shares of RIL, ONGC and GAIL caught buyers' fancy. PSU index up 1.61 per cent.