Sensex has ended (provisional) at 19,664 - down 119 points. Nifty ended down 38 points at 5,978.
(Updated at 1435 hrs)
Markets opened higher on Monday on hopes of global growth recovery in US after better-than-expected economic data, however, gains were capped on caution ahead of third quarter earnings starting this week.
The Sensex opened in the green at 19,820. However, profit booking took markets lower with the Sensex trading down 26 points at 19,757. Nifty is down 10 points at 6,007.
Global risk appetite was positive after US data showed employers added workers in December at about the same pace as the prior month while manufacturing expanded at a faster pace in December.
Meanwhile in Asia, the Nikkei slipped nearly 1% to 10,599. Hang Seng, Taiwan Weighted and Kospi were also in the negative zone. Many Asian metal and mining stocks had lost ground on Friday following the Fed minutes, and they added to those losses on Monday.
Foreign institutional investors (FIIs) bought shares worth a net Rs 1164.41 crore on Friday as per provisional data from the stock exchanges.
Back home, According to Navneet Daga, Derivative Analyst with KR Choksey Securities, "structurally markets looks very promising for upside, but on short term its more or less likely to consolidate in range of 5,930 to 6,100 levels, before we get cues from earning session."
Failing to maintain its initial upward momentum, the rupee today slid by 13 paise to 55.03 against the dollar in late morning trade due to bouts of demand for the US currency from banks and oil importers amid firm cues overseas.
BSE capital goods index slipped 1% to 10,971. FMCG, bankex and consumer durables indices were also down around 0.1-0.5% each.
However, BSE oil & Gas index bucked trends and gained 0.8% at 8,927. Market heavyweight, Reliance Industries slipped 0.4% at Rs 857 after gaining in early trades.
Auto stocks continue to outperform since early trades on hopes of robust earnings growth in the third quarter. BSE auto index was up 0.7% at 11,673. Maruti Suzuki has advanced 3% to Rs 1591, its highest level since December 15, 2009 on the NSE, on hopes of strong net profit growth in Q3 on account of the low base of last year and sharp revival in volumes post the Manesar strike. Mahindra & Mahindra added 1.2%, followed by Hero MotoCorp.
Cipla surged 2.3% at Rs 426. ONGC, Infosts and Sun Pharma were up over 1% each. On the other hand, Larsen & Toubro slipped 2% to Rs 1,595. HDFC was down 1.5% at Rs 825. Hindustan Unilever, HDFC Bank and Tata Power were down around 1% each.
BSE market breadth was strong. Out of 2,970 stocks traded,1,674 shares have advanced while 1,165 shares have declined.