Markets slump on Fed QE3 end-talk

Broader markets fall, moving in line with benchmark indices on global concerns

Markets continued to trade lower this Thursday on concerns US Federal Reserve may scale-back its economic stimulus or third round of quantitative easing (QE3).

The minutes of the Federal Open Market Committee’s Jan. 29-30 meeting showed policy makers were divided about the strategy behind Chairman Ben S. Bernanke’s program of buying bonds, amid hints of premature withdrawal of stimulus.

Domestic sentiments were also jittery as the crucial Budget session of Parliament began today with the United Progressive Alliance government set to face a stiff challenge because of the controversies surrounding the chopper deal.

At 1PM, the Bombay Stock Exchange's 30-share index Sensex fell 200 points to trade at  19,443  while the National Stock Exchange's 50-share Nifty declined 58 points at 5,885.

Meanwhile, Asian markets traded lower as China ordered increased property curbs amid talks of a hedge fund liquidating big positions in commodities.

Japan's Nikkei dropped 1.4% to 11,309, Hong Kong's Hang Seng fell 2% to 22,899, Singapore's Straits Times was down 0.5% to 3,292, while China's Shanghai Composite declined 3% to 2,326.

Back home, barring consumer durable index, rest all fell with metals, real-estate, capital goods , banking sectors leading drop on BSE.

Among key Sensex stocks, Bajaj Auto gained 0.5%, Bharti Airtel added 0.4%, Cipla rose 0.3% on BSE.

Among losers,  Sterlite and Hindalco Industries declined over 3%, ICICI Bank and SBI fell 2% and 1% respectively, HUL and Dr Reddy's fell 2% and 0.6% , Tata Motors is down 1.3%  on BSE.

The other key notable movers include,  Madras Cements gained 1% and touched a yearly high at Rs 254 today. The southern cement company had an impressive Q3 earnings as compared to its peers like ACC and Ambuja.

Mumbai-based textile major, Alok Industries slipped nearly 1% to Rs 9.99 as the company decided to part ways with London-based Savile Row Co.

The broader markets traded lower with mid-caps and small-caps falling nearly 1% on BSE.

The market breadth is negativee. Out of 2,625 stocks traded, 1,676 stocks slumped compared to 835 advances on BSE.