Sensex, Nifty50 off record highs amid selling pressure in IT shares; Nifty IT falls over 3%

Domestic equity benchmarks turned flat amid choppy trade after scaling fresh peaks on Wednesday driven by strong buying interest in financial shares. Selling pressure in IT stocks like Tata Consultancy Services (TCS), Infosys and Tech Mahindra weighed on the market, dragging the Nifty IT gauge by more than three per cent. All eyes were on a key rate decision in the world's largest economy due later in the day. 

At 1 pm, both headline indices were down 0.1 per cent, with the Sensex trading 43.8 points lower for the day at 83,035.8 and the Nifty50 at 25,401.6, down 17 points from its previous close.

TCS, HCL Tech, Infosys, Tech Mahindra, Wipro, ONGC, LTIMindtree, Tata Steel, Cipla, Asian Paints and Titan, trading between 1.3 per cent and 3.5 per cent lower, were the worst hit among the 36 losers in the Nifty basket. 

On the other hand, Shriram Finance, Bajaj Finance, Bajaj Finserv, ICICI Bank, SBI and HDFC Bank, trading between 1.2 per cent and 3.8 per cent higher, were the top gainers.

Weakness in IT shares came about after losses to the tune of five per cent in Accenture shares after the consultancy and business strategy major was projected to defer promotions of most of its staff by six months amid a grim outlook.

ALSO READ: TCS, Infosys lead sharp fall in Nifty IT; here is an Accenture connection

NSE's India VIX index, a gauge of volatility, was up 5.5 per cent at 13.3 in afternoon deals, having risen as much as 6.2 per cent earlier in the day. 

Overall market breadth remained extremely negative with an advance-decline ratio of 5:3 as 1,485 stocks rose while 2,401 fell on BSE. In other words, five stocks fell for every three stocks rising in the listed space on the boruse. 

Globally, investors remained cautious ahead of a key rate decision by the Fed due late on Wednesday India time, with markets pricing in a 25-basis-point reduction in the key lending rates.     

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