Sensex, Nifty surrender early gains as IT shares fall on weak TCS commentary

Mumbai, October 12

Benchmark indices Sensex and Nifty erased early gains to trade lower on Thursday as IT shares declined after TCS stated that headwinds continue for the sector amid a sluggish economic climate.

The 30-share Sensex opened higher and rose further by 104 points to hit a high of 66,577.60 as banking, auto and metal shares advanced in line with positive global markets.

However, the gains were offset by losses in IT shares, dragging to the 30-share index down by 84.16 points or 0.13 per cent to 66,388.89 at 9.50 am.

The broader Nifty also retreated from early highs to trade 23.70 points or 0.12 per cent down at 19,787.65. It moved between a high of 19,843.30 and a low of 19,784.55 in morning trade.

Rate-sensitive stocks gained after US Federal Reserve’s meeting minutes released on Wednesday suggested that the US central bank would not raise interest rates in the near future amid uncertain economic conditions.

Among Sensex shares, IndusInd Bank, Axis Bank, SBI, Tata Motors, JSW Steel, ICICI Bank, Maruti, Tata Steel, and M&M advanced in early trade.

However, the gains were negated by more than 1 per cent fall in IT major TCS which emerged as leading Sensex loser.