The BSE Sensex and Nifty ended lower snapping its six-day winning streak as selling in IT stocks weighed on the benchmark indices. Earlier in the day the Sensex rose over 150 points at its day's high to 28,064 on the back of positive momentum on hopes of faster reforms. But it could not sustain the gains amid weak global cues.
IT stocks witnessed selling pressure amid concerns over cross-currency movements. The euro hit a nearly nine-year low versus the dollar on Monday as investors bet on quantitative easing by the European Central Bank while soft manufacturing surveys pushed down shares and sent oil prices to 5 1/2-year lows.
TCS and HCL Tech fell 1.52 per cent and 1.68 per cent respectively, while Infosys, which is set to report its third quarter earnings on January 9, ended 0.86 per cent lower. The CNX IT sub-index of National Stock Exchange fell 1.09 per cent.
DLF was the top loser in Nifty, down 2.44 per cent followed by Dr. Reddy's Lab and Bharti Airtel, which ended 2.27 per cent and 2.22 per cent lower respectively.
Maruti Suzuki gained 2.63 per cent to be the top gainer in Nifty. CLSA maintained buy on the stock with a target price of Rs 4400, which is over 27 per cent higher than its current market price.
Tata Motors, Tata Steel, L&T and IDFC were the other top gainers in Nifty.
The Sensex ended 45.58 points lower at 27,842.32, and the Nifty closed 17.05 points lower at 8,378.40.
Market breadth remained positive as 1,546 shares advanced out of the 3,089 stocks traded in BSE and 1,419 stocks declined.