MUMBAI: The BSE Sensex and NSE Nifty closed in red after software stocks declined, led by Infosys as it reduced its full-year U.S. dollar revenue growth guidance, while worries over September retail inflation which could edge higher also weighed on the market. Sensex closed 175.40 points down at 26,904. Nifty closed 46.10 points down at 8,143.60.

Infosys, India’s second-largest software services exporter by revenue, on Monday cut its fiscal year 2016 revenue forecast saying broad weakness in IT spending and a stronger dollar were making clients wary, sending its shares sliding as much as 5 percent.

India will release September retail inflation and August industrial output data later in the day. The inflation rate is likely to pick, driven by higher food prices, but will remain comfortably below the central bank’s target and allow room for further policy easing, a Reuters poll showed.

“There has been Infosys-led falls but Infosys earnings cannot be extrapolated to the entire earnings season,” said Aneesh Srivastava, ‎chief investment officer at IDBI Federal Life Insurance Co.

Information Technology sector led the declines. Infosys fell 3.93 percent while Tata Consultancy Services lost 1.17 percent.

Among gainers, metal stocks soared for the second day after commodities group Glencore said it would cut its zinc output by a third, sparking a short-covering rally across the board. Share price of Vedanta surged 6.66 percent while Hindalco Industries rose 5.98 percent.

The market breadth indicating the overall health of the market remained negative. On BSE, 1,306 shares advanced and 1,444 shares declined. A total of 119 shares stood unchanged.