The S&P BSE IT was also trading in the red dragged by L&T Infotech which shed 2 percent followed by NIIT Tech, Persistent Systems, Midntree and L&T Tech.
The top Nifty gainers include Infosys, Wipro, Tech Mahindra, TCS and HCL Tech while BPCL, IOC, YES Bank, Indiabulls Housing Finance and Reliance Industries are the top losers.
Selling was seen even in topline stocks, indicating that buyers are a bit cautious.
“I am very bullish on the India story. The earnings recovery should happen to start this quarter and in the next 4-6 quarters we should see a robust earnings growth. We are seeing early signs of a pick up in capital expenditure,” said Vikas Khemani of Edelweiss Securities.
Unlike in the past 11 years, where sectors like IT, pharma, private-sector banks and consumer goods were in the driver’s seat, this is going to be a quarter where public sector banks and metals are going to steal the show.
Gartner in its report, has slashed its overall IT spending estimates for 2017 to 1.4 percent from 2.7 earlier, owing to the strengthening dollar. It feels the country's IT spending will touch USD 3.5 trillion this year.
Online forums including social media have become an outlet for anxious and anonymous H1B aspirants to vent emotions amid uncertainty over the future of their careers
All eyes on the outcome of the RBI's decision on key interest rates which will be out later today.
Fourth quarter earnings from India Inc. along with the Reserve Bank of India’s policy stance on rates will decide the trend for the market in this week.
Index heavyweights continue to hold the market from falling further, which is off its day‘s low now. IT stocks were under pressure due to developments on H1-B visa front.
Reliance, Power Grid and NTPC were the top gainers on the index, while pharma stocks, Grasim and Tech Mahindra were the top losers on the index.
The US announced that from April 3 it would temporarily suspend the 'premium processing' of H-1B visas that allowed some companies to jump the queue, as part of overall efforts to clear the backlog.
Investors build on early morning gains, even as indices seek to hold on to key levels. Reliance was up over 3 percent, while IT stocks continued to remain under pressure following developments on premium H1-B visa in the US.
Investors could be cautious on the Street ahead of the crucial exit poll results of five state assembly elections. IT stocks could be strained due to US‘ actions on H1-B visa front. Meanwhile, Radio City will hit the market with its IPO later in the day.
A trend is emerging among IT companies to buy back shares amid rising concerns that they are struggling to put excess cash to investment use in a growth-challenged environment.
While IT stocks have factored in the negative effects of US President Donald Trump's protectionist measures such as the H1B visa reform, a possible revival of the US economy under Trump administration has not been priced in, according to Jonathan Schiessl of Ashburton.
Speaking to CNBC-TV18, Shyam Sunder Bhat, Chief Investment Officer at Exide Life Insurance, said share buybacks could become a trend among IT companies.
The market is very strong and alot of money is flowing into it, says Ashwani Gujral of ashwanigujral.com. He adds that till global market continues to flourish, local market may not see big declines and corrections will be short lived.
IT stocks continue to remains under pressure on back of talks of re-introduction of immigration bill which proposes to increase wages from USD 65,000 to USD 100,000.
The optimism around US economy's growth and a strengthening dollar are signs that IT companies are going to give out a stellar performance in the long-term, says Mahesh Nandurkar, India Strategist at CLSA.
Developed markets may no longer continue to outperform the emerging markets, says Chief Executive Officer of Deutsche Bank India, Ravneet Gill. The rupee too, continues to perform better than other emerging market currencies, he adds.
Increasing worries over the impact of US H1B visa changes on Indian IT companies kept stocks in the sector under pressure in today's trade. Dipan Mehta, member of BSE & NSE, says it is a 'sell at every rise' for the IT stocks.
Ashwani Gujral says the market conditions have suddenly changed and Nifty touching 8,300 has become unlikely. Higher commdity prices will result in high inflation and will bring down commodity consumer stocks.
Nilesh Shah, MD, Kotak Mahindra AMC is confident that market will not move in a unidirectional manner but would remain volatile, adding that although he has not turned bearish on the market, he would focus more on ground realities.
Harsha Upadhyaya, CIO Equity, Kotak Mutual Fund says its best to avoid any activity in the Tata stocks for now. Investors should reconsider their position in the stocks only if the Tata-Mistry conflict lingers on for very long.