Paring its early gains,the Bombay Stock Exchange benchmark Sensex declined by 152 points after heavy selling in IT shares on concerns that firming rupee will hit the revenues of software companies.
The 30-share index,which had gained 162 points during the day,closed at 16,806.66 points,a loss of 151.88 points over last close.
The wide-based National Stock Exchange index Nifty lost 41.65 points at 4,985.75. It touched the day’s high of 5,077 points and a low of 4,972.95 points.
Brokers said the rupee which traded below 47 level against the US dollar triggered the selling in IT stocks.
Software exporters earned over 50 per cent of revenue from the US market and rising rupee hit their profitability.
The IT sector index suffered the most losing 2.74 per cent to 4,421.27 as shares of TCS,Wipro and Infosys Technologies,which are scheduled to announce their results on October 9,fell sharply.
Sensex-related Bharti Airtel declined after its rating was cut by Macquarie Group to “underperform” from “outperform.”