Markets continue to trade on a weak note this morning following cues from global peers.
The Sensex opened at 19,841 and dropped further to a low of 19,730. The index is off the day's low and is now at 19,805 - down 1% (152 points).
Nifty is down 49 points at 5,961.
"I continue to remain bullish on India with a Sensex target of 22,000 by the year end. Indias domestic consumption contribution to the GDP is largest amongst the emerging markets, which insulates us from a global slowdown," says Ajay Bagga, MD and Head Private Wealth Management India, Deutsche Bank AG.
US markets dropped in trades on Monday as banking stocks declined. Reports surfaced of insider trading, dampening investor sentiments. The Dow shed 25 points to 11,179.
Asian markets too are trading weak as investors worry the Ireland bailout may be followed by similar situations in different countries. The Hang Seng has dropped 1.3% to 23,203. Shanghai Composite has shed 1.6% to 2,838. However, Nikkei, is up 1% at 10,115. The SGX Nifty is down 58 points (1%) at 5,952. Investors are also worried about China increasing further tightening.
Markets had managed to recover some of last week's losses on Monday as the Nifty went above 6,000. The Sensex closed at 19,957 on buying in banking and IT indices.
All sectoral indices, barring IT, are in red. IT index is flat at 6,040. MphasiS has surged 7% to Rs 607 following its quarterly results. The company's consolidated net profit rose 20% to Rs 1,090.75 crore for the year ended October 31, 2010, over the same period last year.
HCL Technologies, Tech Mahindra and Patni Computers are in the green as well.
"From the information technology (IT) pack, I prefer large companies as spends are coming back," adds Bagga.
BSE realty, bankex and metal stocks lead the losers list.
BSE Realty index has dropped over 2% in trades. " Earnings for 2QFY2011 infrastructure companies were disappointing, mainly from mid-size contractors. The slippage in the profits of the universe was visible due to lower-than-expected EBITDA margins and higher interest costs, with aggregate top-line growth coming in line", says Angel Broking.
Bharti Airtel remains the biggest loser among Sensex stock and is now down 2% at Rs 330.
DLF, Tata Power, SBI and Cipla are also down.
Market heavyweight, Reliance has extended losses and is now down 1.3% at Rs 999.
Metal names are in red. Hindalco and Sterlite have shed 1.3% at Rs 212 and Rs 173, respectively.
ONGC has announced a stock split to lure retail buyers in FPO. The stock is trading at Rs 1,285 - down 1%.