BSE sensex down as investors sell IT stocks

Erasing early gains, the BSE Sensex fell 21 points on Tuesday to 16,536.47, as investors sold IT stocks led by Infosys ahead of its second quarter results and a weak trend in the European markets.
    
Infosys fell 3.17 per cent, pulling down the BSE-IT index by 2.7 per cent. The country's largest software exporter TCS tumbled 2.26 per cent, and Wipro by 2.04 per cent.
    

The BSE 30-stock barometer, Sensex, opened higher in line with Asian stocks and touched 2-week high of 16,774.12.
    
However, it fell as European markets opened weak and entered the negative terrain at the fag to settle at 16,536.47 -- down 20.76 points or 0.13 per cent. In last straight two sessions, it had gained 764.82 points or 4.84 per cent.
    
Similarly, the wide-based NSE 50-issue Nifty fell 5.25 points or 0.11 per cent to 4,974.35.
    
Brokers said investors were unsure of euro-zone debt bailout plans. Besides, they added, that the beginning of the second quarter earnings season this week, with Infosys results tomorrow, kept the investor confidence a little shaky.
    
IT stock fell as ECB President Jean-Claude Trichet said Europe’s debt crisis has reached a "systemic dimension." The Indian software exporters get nearly 85 per cent revenues from the US and European clients.
    
Refinery stocks, including ONGC and RIL also declined while some of the consumer durables, metals, auto and capital goods counters attracted good buying support.
    
"After a soothing rally on , Market witnessed highly volatile session today. A dull opening of European markets further erased the gains from our markets," said Shanu Goel, Senior Research Analyst at Bonanza Portfolio.