The Nifty 50 fell 0.19% to 17,673.35, as of 10:33
a.m. IST, while the S&P BSE Sensex lost 0.21% to
59,784.71. Eight of the 13 major sectoral indexes advanced.
The Nifty had snapped a nine-day winning streak in the
previous session.
Information technology stocks, which led the correction on Monday, were down 0.5%. Eight of the 10 constituents logged losses.
Weak earnings from sector leaders Tata Consultancy Services and Infosys and commentary on concerns over
tech spending in the U.S. and Europe had pushed the IT stocks to
a six-month low on Monday.
Analysts flag near-term headwinds for the sector due to
a slowdown in the banking, finance, services and insurance
(BFSI)segment in the U.S. and Europe, which has already crimped
hiring.
On the flip side, Tata Motors advanced over 2% and was the top gainer on the Nifty 50 index after global brokerage CLSA picked the company and rival Maruti Suzuki India as its favourite four-wheeler stock. Maruti Suzuki rose nearly 1%, pushing the Nifty Auto up 0.3%.
"A revival in rural demand would prove to be a catalyst for the auto segment in the near term," said Amnish Aggarwal, analyst at Prabhudas Lilladher.
Analysts expect benchmark Nifty 50 index to witness consolidation in the near term.
"Managing risk holds the key," said Ajit Mishra, vice president of technical research at Religare Broking, citing an uptick in volatility during the earnings season. Among individual stocks, Angel One rose over 5% after posting a 30% jump in March quarter profit, led by a surge in orders. ($1 = 81.9610 Indian rupees) (Reporting by Bharath Rajeswaran in Bengaluru; Editing by Dhanya Ann Thoppil and Nivedita Bhattacharjee)
