The BSE Sensex falls 0.73%, while the Nifty loses 0.73% led by fall in tech shares and Reliance Industries.
Outlook may turn more negative after RBI deputy governor Subir Gokarn says risk of inflation becoming resurgent "significant", and there is limited room for further interest rate easing in current scenario.
Finance Minister said on Monday GAAR would be delayed until fiscal 2013-14.
JPMorgan sees a relief rally of 3-5% after GAAR postponed, but adds that fundamental issues, including economic growth and fiscal deficit, need to be addressed.
The BSE Sensex shed 150 points again amid choppy trade as country's largest software services exporter Tata Consultancy Services tumbled 5% after the US based Cognizant cut its revenues guidance for CY12 to 20% from 23%. Its rivals Infosys and Wipro were down 2-2.7%.
The BSE Sensex and NSE Nifty pared losses led by recovery in banks, capital goods and metals stocks. FMCG stocks too extended gains whereas the fall in technology stocks capped the recovery.
The BSE Sensex fell 1% due to fall in capital goods, banks, metals and technology stocks. Even the NSE Nifty dropped below the 5100 level led by 32 components.
SENSEX-NIFTY-INFOSYS-WIPRO-TCS-GAAR:BSE Sensex falls; tech sector hit
The BSE Sensex and NSE Nifty opened flat on Tuesday after seeing a sharp swing yesterday. Even US and Asian markets were sideways in trade.
READ MORE ON BSE Sensex, Tata Consultancy Services, Infosys, Reliance Industries, RBI, deputy governor, Subir Gokarn, GAAR
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