Sensex retreats further from near two-month high

MUMBAI (Reuters) - India's stock markets fell on Tuesday, retreating further from near two-month highs hit in the previous session as software stocks remained under pressure after Infosys Ltd trimmed its U.S. dollar revenue growth guidance, clouding the outlook for the sector.

Infosys, India's second-largest software services exporter by revenue, on Monday cut its fiscal year 2016 revenue forecast, saying broad weakness in IT spending and a stronger dollar were making clients wary.

Oil explorers such as Oil and Natural Gas Corp also fell after U.S. and Brent crude tumbled in the previous session to post their biggest daily percentage declines since the start of September.

 

Asian shares, which slipped from two-month highs after a strong rally, also weighed on sentiment.

"Large-cap results would remain weak relative to mid-caps due to global slowdown," said G Chokkalingam, founder of Equinomics, a Mumbai-based research and fund advisory firm.

Some profit-taking is also seen amid lack of clear triggers apart from the earnings season, he added.

The 30-share BSE Sensex was trading 0.53 percent lower, while the 50-share Nifty was down 0.5 percent, on track for their second straight session of declines after hitting their highest level since Aug. 21 on Monday.

Retail inflation rose in September after hitting a record low in the previous month, while markets ignored the robust factory output data.

Technology stocks led the fall. Infosys lost 2.4 percent, adding to Monday's 3.8 percent decline.

Tata Consultancy Services , which will report its quarterly results later in the day, was down 0.3 percent, while HCL Technologies fell 2.8 percent.

Among oil explorers, ONGC was down 3.8 percent, Cairn India fell 1.4 percent and Reliance Industries dropped 0.5 percent.

Buying was seen in beaten down resources stocks. Coal India rose 1.1 percent, while UltraTech Cement gained 1.6 percent.

(Reporting by Abhishek Vishnoi in Mumbai; Editing by Subhranshu Sahu)