Sensex falls 37 points, erasing early losses; IT in demand

The benchmark Sensex fell for the third straight day and dropped 37 points today even as value buying and gains in tech shares helped to trim early losses, wrapping up its worst weekly performance in two months.
Rising European stocks and sustained foreign fund inflows also helped in the recovery.
Larsen & Toubro, Reliance Industries and Tata Motors fell as 19 Sensex shares declined. Five of the 12 BSE sectoral indices dropped, led by power and capital goods shares even as tech stocks advanced.
The S&P BSE Sensex opened on a negative note and dropped 157 points to the day's low of 20,731.33 amid weak global cues. It closed at 20,851.33, a loss of 37 points or 0.18 per cent. With a drop of 342 points this week, it was the worst performance for the Sensex since the period ended November 8.

The broader, 50-share CNX Nifty on the National Stock Exchange softened by 10 points, or 0.16 per cent, to 6,211.15.
"Latter part of the day saw buying interest from lower levels and the Nifty managed to close above the 6,200 level. Political uncertainties in the country and profit booking at higher levels are limiting the upside for the index," said Rakesh Goyal, Senior Vice President at Bonanza Portfolio Ltd.

Heavyweights Infosys and TCS were the major gainers on the Sensex after the rupee's depreciation and an improvement in the US economy. After touching a low of 62.55 against the dollar, the rupee traded at 62.30 at 16:00 hrs.

The markets appeared unimpressed after Prime Minister Manmohan Singh today said his government would continue to push economic reforms, create a favourable environment for foreign direct investment and work harder to generate more employment opportunities in the manufacturing sector.
Overseas investors bought a net Rs 674.05 crore of shares yesterday, according to provisional stock exchange data.
Asian stocks, except Japan which was closed, finished lower after US equities retreated from record highs and a gauge of China's non-manufacturing industries declined.