Markets in consolidation mode

The markets hit the pause button for the second consecutive day. With investors choosing to take some profits off the table after the stupendous gains of the recent past, the psychologically crucial levels of 20k and 6000 are posing an intermittent resistance for the hitherto galloping indices. The Sensex ended at 19,861, lower by 80 points and the Nifty ended at 5959, down 39 points.

The global front was lacklustre, with Wall Street having a subdued session of trade, most Asian markets having a festive holiday and European markets losing around half a percent in mid-morning in a nervous session of trade. There was not much to cheer on the domestic front either India's food inflation continued to accelerate in the year to September 11, maintaining expectations of another rate hike by the year end. The food price index rose an annual 15.46% compared with 15.10% a week ago. The annual fuel price inflation of 11.48% was flat during the week, while the primary articles index rose 16.80%, faster than the week-ago increase of 16.22%.

The economy will grow more than 8.5% in the fiscal year to end-March 2011, Finance Minister Pranab Mukherjee said today, a forecast in line with other government projections.

However, interest rate sensitive realty stocks fell on worries rate hike could crimp demand for housing properties which are mostly driven by finance. The Bank Nifty was down 1.5% at 12,123.

Among banking stocks, ICICI Bank and Axis Bank slumped to Rs 1,097 and Rs 1,492, respectively. Canara Bank, Kotak Bank and Oriental Bank of Commerce were also down. However, IDBI bucked the trend and added 0.5% at Rs 147.

Oil & gas stocks - Reliance and ONGC moved in opposte directions. While market heavyweight, Reliance, dropped 2.2% to Rs 997, ONGC added 1.3% to Rs 1,422.

Realty stocks were down. Unitech shed 3% at Rs 83. DLF was down 1.7% at Rs 348.

HCL Tech, Bharti Airtel, Suzlon, Sail, Cipla and Sun Phama were down 1-2% each.

Meanwhile, Hindustan Unilever gained 2% at Rs 304. Other FMCG heavyweight, ITC was up 1.5% at Rs 177.

Jaiprakash Associates, Mahindra & Mahindra Ranbaxy and Tata Steel added around 1% each.

Mahindra Satyam topped the value chart on the NSE with a turnover of Rs 779.32 cr, followed by Reliance, SBI, Infosys and Tata Steel.

Mahindra Satyam also led the volume charts with trades of over 70 million shares, followed by Ispat Industries, Unitech, DCB and Punj Lloyd.