Shares of information technology companies such as HCL Technologies, Infosys, Wipro, TCS, Tech Mahindra, Mindtree, Persistent Systems and Mphasis came under heavy selling pressure today after a bill backing key changes in the H-1B programme was reintroduced in the US.
The IT sub-index on the BSE slumped nearly 3 per cent with shares like HCL Technologies, Infosys, TCS, Wipro and Tech Mahindra falling up to 4.5 per cent.
The Sensex ended 119 points lower at 26,759 and Nifty declined 30 points to settle at 8,244.
Meanwhile, the banking shares witnessed buying interest. The Bank Nifty closed 0.82 per cent higher at 18,264 on the back of gains in Kotak Mahindra Bank, Yes Bank, HDFC Bank, IndusInd Bank and ICICI Bank.
From the Nifty basket of shares, 29 ended lower while 22 closed higher.
The broader markets also closed on a weak note as BSE mid-cap index fell 0.27 per cent and small-cap index declined 0.4 per cent.
The overall market breadth was negative as 1,509 shares closed lower while 1,217 ended higher on the BSE.
