Sensex falters; IT stocks gain after Cognizant results

Reuters Market Eye - The BSE Sensex falls 0.3 percent, as investors continue to book profits after the recent rally to a record high. The Nifty is down 0.4 percent.

Traders say markets will remain in a consolidation mode this week, but could resume their upward trend as foreign inflows are expected to remain strong until the U.S. Federal Reserve starts to taper its monetary stimulus.

Metal and banking stocks lead the fall. Hindalco Industries is down 2.3 percent, while Tata Steel falls 1.4 percent, on profit-taking with both having risen for the last six trading sessions.

State Bank of India down 2.6 percent ahead of its earnings next week which is likely to set the tone for other state-run banks. Punjab National Bank down 1.7 percent.

 

However, ABB India gains 5.5 percent after the power equipment maker and automation technology provider posts a surge in July-September earnings.

ABB's state-run rival Bharat Heavy Electricals is up 0.4 percent ahead of its results due later in the day.

Software services exporters stay up after U.S.-based Cognizant Technology Solutions Corp reported on Tuesday a better-than-expected 22 percent rise in revenue.

Infosys rises 1 percent, Wipro gains 0.6 percent, while Tata Consultancy Services rises 2.1 percent.

(Reporting by Swati Bhat)