Markets come off two-month highs; Nifty ends below 8,250; IT stocks drag

The BSE Midcap also cut all its intraday gains to shed 0.3% at close

The benchmark indices pared all their intraday gains to settle lower as a slump in IT stocks on worries over H-1B visas and negative trend seen in European markets affected sentiment. 

The S&P BSE Sensex and the Nifty50 reversed direction soon after hitting their highest intraday level in almost two months in mid-morning trade. 

The Sensex settled at 26,759, down 119 points, and the Nifty ended at 8,243, down 30 points. 

The BSE Midcap also cut all its gains to shed 0.3% at close. The index had risen as much as 0.7% in intraday trade. The BSE Smallcap finished 0.4%