Markets volatile, Nifty holds 6250, IT stocks fall on profit booking

After surging nearly 400 points on Monday, the Indian equity markets opened in the red today. The BSE Sensex fell 0.04 percent while the Nifty was down 0.02 percent. IT stocks fell on profit-taking after the recent run-up on Infosys better-than-expected quarterly results.

At 11 am, the BSE Sensex fell0.12 percent at 21108, while the NSE Nifty was down 0.11 percent at 6265.

Tata Consultancy Services fell 1 percent, while Infosys was down 0.24 percent

Ranbaxy Laboratories fell another 1.8 percent, adding to Monday’s 5.4 percent slump after the US Food and Drug Administration raised concerns about the manufacturing practices at a factory owned by the company.

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Reliance Industries Ltd fell 0.2 percent on caution ahead of its earnings later in the week.

Asian shares came under pressure on Tuesday, with Japanese stocks tumbling more than 2 percent as the yen hit a four-week high against the dollar after last week’s surprisingly weak jobs report raised concerns about the U.S. growth outlook.

Neelkanth Mishra of Credit Suisse said investor interactions suggest a surprisingly widely held view of a 20 percent market swing on the day of the election results. He believes for a more than 20 percent market move one alliance must win 220 plus seats and a 20 percent decline can happen if none of the two large alliances is able to get even 160 seats. “As of now both look unlikely,” he said in an interview with CNBC-TV18.

With inputs from Reuters