On the other hand, the S&P CNX Nifty on the NSE closed 19.40 points higher at 1394.65 points. For the next two trading sessions during the week, forecasters expect mainly sideways movement with the shares from the commodities and the FMCG sectors showing some movement.

According to market players, there was substantial selling pressure in the IT counters after the initial spurt as a reaction to rally on the Nasdaq on Tuesday. ``Also the net FII investments of close to Rs 1100 crore during the current month on the face of negative figures over the last three months put the investors on a psychological high,'' said a dealer with a domestic broking house. However, as speculators, and to some extent the FIIs too, took the advantage of higher prices to book profit, the IT stocks reacted sharply. Infosys lost close to Rs 60 to Rs 9,130.05 and NIIT dropped Rs 35 to Rs 2,458. However, the shift of the markets sentiment towards cyclical and commodity stocks was apparent as HLL closed with a gain of Rs 49 to Rs 2339 and Telco closing on the upper circuit level at Rs 240.90.

Tisco also closed strong at Rs 151.15, up Rs 11 over its previous close and Ranbaxy Labs at Rs 976, up Rs 45. Also refinery stocks closed with good gains.

For Wednesday's trading, brokers expect a more-or-less sideways movement. According to Chirag Sanghvi at Asit C Mehta Investment Intermediaries, ``the market is likely to close at Wednesday's levels or marginally lower.'' Agrees Hiten Sampat at Parag Parikh Financial Advisory Services, ``we are expecting a small correction from the current levels.'' On a bit longer term view, according to Ambaresh Baliga at Kotak Securities, the market cannot rally majorly from the current levels. ``We are expecting another reaction before the year ends and that should give a good opportunity to the retail investors to buy at lower levels,'' said Baliga.

Among the commodity stocks, according to market players, steel sector stocks are looking good. And the reaction in the IT counters is expected to continue for a few more sessions. ``During the recent rally in the IT scrips, speculators and FIIs have made good gain without paying substantial margins. So it was quite logical for them to book profit in these counters,'' said a software analyst with a domestic broking house.

Kale debuts on BSE
The applications software firm Kale Consultants made its debut on the BSE on Wednesday at Rs 340. On the NSE, KPIT Systems, another Pune-based software firm, also made its debut, at Rs 244.25 with only 200 shares changing hands. However, the Kale scrips on the BSE closed at Rs 288.70, substantially down from its listing price.