Markets open flat; IT stocks drag following Cognizant guidance

After a sharp recovery in indices yesterday the Indian benchmark indices opened flat on Tuesday amid mixed global cues.

On Monday markets ended in the green after the Finance Minister, Pranab Mukherjee announced in parlianment that GAAR was postponed by a year and also clarifiied on some of its provisions.

Most of the Asian stocks were in the green as the negative reaction to Europe results faded. The Sensex was lower by 79 points at 16,832 points and the Nifty lower 27 points at 5,086 at 9.45 am IST.

The shares of major IT companies were trading lower by 3-4% after Congnizent slashed its revenue and profit guidance for Financial Year 2012. TCS was down 3.67%, Infosys 3.07% and Wipro lower by 2.97%.

In the sectors on BSE, the IT Index slipped 2.8%, Capital Goods Index was seen 2% lower. However, the BSE Realty Index was trading 1.2% higher.

Among the stocks that gained today in early trade were GAIL, Bank of Baroda, Coal India and DLF.

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