Sensex snapped its three-day winning streak on Friday as market heavyweight Tata Consultancy Services Ltd slumped on worries about its future following key management changes.
Shares of the IT outsourcing giant fell 4 percent to Rs 2,250 as CEO Natarajan Chandrasekaran's departure to head holding company Tata Sons as chairman overshadowed the company's better-than-expected December-quarter results.
Adding to the fall, Infosys shares declined on profit-taking after the company posted positive quarterly results, but narrowed its full-year revenue guidance range. The stock closed 2.74 percent lower at Rs 973.
Infosys fell as much as 3.73 percent to its lowest since December 7, coming off a two-and-a-half-month high touched earlier in the session.
Earlier in the day, the country's second biggest software services company posted a better-than-expected 7 percent rise in third-quarter profit.
"Market was overheated ahead of Tata Consultancy Services and Infosys Ltd reporting their results," said RK Gupta, managing director, Taurus Asset Management Company
"We can also see a bit of profit-booking as well as caution ahead of Donald Trump taking over the U.S. presidency."
The Sensex ended 9 points lower at 27,238 and Nifty declined 7 points to settle at 8,400.
IT shares led losses with the Nifty IT index down 1.30 percent.
Banks extended their rally as the Nifty Bank index closed 0.2 percent higher.
From the Nifty 50 basket of shares, 33 ended lower while 18 closed lower.
Energy stocks rose as crude oil edged up, supported by reports on details about OPEC output cuts.
Reliance Industries and ONGC closed nearly 1 percent higher.
The broader markets ended on a flat note with BSE mid-cap and small-cap indices closing marginally unchanged.
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