Nifty slips below 5,900 as market looks at Rajya Sabha

IT, banks, power sectors lead declines on BSE

The National Stock Exchange's Nifty index slipped below key 5,900 levels in late morning trades as investors booked profits after over 4% rally in stocks last week and amid caution ahead of FDI vote in Rajya Sabha where the government must hold majority to defeat the Opposition motion against the contentious measure.

Prime Minster Manmohan Singh's government on Wednesday won the FDI motion with 253 votes to the opposition's 218 with the Bahujan Samaj Party and the Samajwadi Party staying out. The focus now shifts to the upper House, where the debate starts today and voting is expected on Friday.

At 11:20AM, the Bombay  Stock Exchange's Sensex fell 174 points to 19,219 while National Stock Exchange's Nifty-50 index declined 53 points to 5,848 in the afternoon deals.

Global risk appetite was firm after data on U.S. services and factory orders beat estimates amid hopes of resolution in US budget talks.

Asian shares were mixed with Shanghai Composite falling 0.6% to 2,020,Hang Seng down 0.1% to 22,247 and Straits Times fell 0.18% to 3,070.Meanwhile, Nikkei rose 0.6% to 9,527 while KOSPI Composite was up 0.04% to 1,948.

The MSCI Asia Pacific index outside Japan rose 0.01% to 878 in late morning trades.

Back home, IT, power, capital goods, metals, real-estate, banks, oil & gas indexes fell while only consumer durables sector gained on BSE.

Among key Sensex stocks, Bharti Airtel, Hindustan Unilever dropped 1.5% and 2% while in metal space, Sterlite Industries and Hindalco declined 1.2% each. Among gainers,  Bajaj Auto gained 1% while Tata Motors and HDFC rose 0.2% each on the BSE.

Shares of Information technology (IT) companies are continue under pressure for second day in a row after Cognizant Technology Solutions said that it expects 16% revenue growth in 2013 as against its projected 20% growth for the current year 2012. India's two biggest software exporter, Tata Consultancy Services and  Infosys fell over 2% each.

Among other notable movers, Tara Jewels which got listed lsted at Rs 242, and at a 5.2% premium against its issue price of Rs 230 per share hit a high of Rs 245 and low of Rs 238 so far on BSE.

MphasiS is trading higher by 3% at Rs 398 in otherwise weak market in morning trades after the IT consulting and software firm reported 14% year-on-year growth in its consolidated net profit at Rs 209 crore for the fourth quarter ended October 2012.

Retail stocks fell from day's high on profit-booking. Shares earlier rose after the government won the Lok Sabha vote on allowing foreign direct investment (FDI) in multi-brand retail.

Pantaloon Retail declined 1.5% to Rs 234 while Trent Limited, a Tata Group Company, fell 1% to Rs 1,260. Meanhwile,  Shoppers Stop rose 1.4% each at Rs 470,

The BSE mid-cap and small-cap indices fell following the benchmark indices trend by nearly 0.1%.

The overall breadth is weak as 1,261 stocks have declined while 992 stocks advanced on the BSE.