This Article is From Jan 06, 2017

Sensex Turns Flat On Weakness In Technology Shares, HCL Tech Slumps 4%

Sensex Turns Flat On Weakness In Technology Shares, HCL Tech Slumps 4%
Sensex turned flat after rising over 100 points while the broader Nifty moved below levels of 8,300 after selling pressure in IT shares picked up pace in late morning trades.

Frontline IT shares such as HCL Technologies, Infosys, TCS, Tech Mahindra and Wipro were among the top losers in the Nifty. The IT sub-index on the BSE was the top sectoral loser, down 2.8 per cent.

Analysts say weakness in IT shares is due to strength in rupee against the US dollar.

Meanwhile, the Asian share markets were trading higher taking cues from higher US markets.

Hong Kong's Hang Seng was up 0.34 per cent, Taiwan Weighted advanced 0.2 per cent and South Korea's KOSPI jumped 0.42 per cent.

Overnight, the Nasdaq squeaked out a record high close on Thursday thanks to, while deep drops in Macy's, Kohl's and other department stores weighed on the broader stock market.

Back home, Ruchit Jain, equity technical analyst at Angel Broking, says Nifty faces resistance around 8,275-8,280 levels.

From the Nifty basket of shares, 30 were advancing while 21 were declining.

ONGC, Yes Bank, IndusInd Bank, Bank of Baroda, State Bank of India and Eicher Motors were among the gainers.

Meanwhile, buying was seen in metal, oil & gas and pharma shares.

The broader markets also fell from intraday highs. The BSE mid-cap index was up 0.24 per cent while the small-cap index declined 0.05 per cent.

HPCL, OFSS, UPL, Apollo Hospitals, Aditya Birla Nuvo and Reliance Communications were among the losers from the mid-cap space.

As of 10:55 a.m., the Sensex was up 42 points at 26,920 and Nifty was at 8,282, up 8 points.