Markets are trading lower on account of profit booking in Capital Goods and IT counters, global markets also pare early gains. The Sensex is trading lower by 172 points at 19,829 and the Nifty has fallen 57 points to 5952.
Devangshu Datta, Technical Analyst said, "while the outlook continues to remain positive, consolidation in the range of 5900-6100 is not ruled out before it starts a fresh uptrend." Federal Reserves signaled quantitave easing two by saying it would it take the necessary steps to support recovery.
European markets surged in the opening trades led by gains in mining and utility stocks. The U.K.'s FTSE 100 index rose 0.23%, the French CAC 40 index turned negative, down 0.2%, and the German DAX 30 index surged 0.3%. Japan's Nikkei Share Average also entered into a negative zone, down 0.3% as exporters declined on strengthening Yen, Hong Kong's Hang Seng Index surged 0.8%. Markets in China, Taiwan and South Korea were shut on account of public holiday. BSE IT and Realty indices are leading the lossers, down 1.6% each. From the IT space, TCS is the top loser, down 2.1%, followed by Infosys, Patni Computers, Rolta India and HCL Tech, are all down over 1%.
"The process of profit-booking is on and may continue for some time in IT stocks; TCS, Wipro, and Infosys appear good bet on declines," Dutta Said.
From the Realty counter, Phoenix Mills has fallen 3.3%, Indiabulls Real Estate, Unitech and DLF are other prominent losers, down over 2% each. Only 6 components on the Sensex are trading in green.
Maruti Suzuki continues to lead the Sensex charts, the stock is trading at 1437,pares mornings gains, up 1.7% followed by NTPC and SBI, up over 0.5% each. Larsen and Toubro is the top loser down 3.2% at Rs 119, followed by L&T, down 3%, RCom and TCS are down over 2%. Even midcap and smallcap indices are trading in the red, down 0.8% each.
Market breadth is extemely negative, 883 stocks are advancing for 2028 declining stocks.