Sensex falls for 2nd day...IT and Metal shares drag

The Indian stock markets sold off on Monday, extending the previous session's selloff, as investors decided to stay on the sidelines ahead of the release of the latest IIP data and Infosys results. In the process, the Indian equities started the new week on a sour note. The market breadth was also unfavourable for the bulls while volumes too dropped from the last session. The total turnover was only about Rs. 80,000 crores.



The BSE Sensex ended at 18,721 losing 137 points. It had earlier touched a day's high of 18,844 and a day's low of 18,679. It opened at 18,823.


The NSE Nifty closed at 5,616 losing 45 points.

M&M, ONGC, RCOM and ITC are among the leading gainers inthe Sensex and Nifty.

The notable losers are in the Sensex and Nifty are Hindalco,DLF, Wipro and Maruti.

The shares of LML Ltd, CMC Ltd, Aptech and PVR witnessed aspurt in trading volumes

The shares of Bata India, CRISIL, Elantas Beck andGodfrey Phillips witnessed new all time highs.

Today’s decline was led by IT heavyweight Infosys. The stock fell 1.2% ahead of its quarterly earnings tomorrow. Other software biggies like Wipro and TCS also fell in sympathy. Hindalco was another top loser after Environment Minister Jairam Ramesh deferred granting of forest clearance for the company's Mahan coal block in the Singrauli field of Madhya Pradesh.



Traders and investors were jittery amid reports that the Prime Minister will on Tuesday announce the much-awaited Cabinet reshuffle. In addition, the 200DMA has turned out to be a critical resistance for the markets. The NSE Nifty ended in the red for the second consecutive trading session after failing to breach the 5742 (200DMA) level. All eyes would be on Tuesday's IIP data and Thursday’s inflation report for June.



“A confluence of negative factors came together to drag the Indian markets lower for the second day in a row. Chief among them was the nervousness before the all-important results of IT giant Infosys. Market participants also displayed anxiety ahead of the release of the IIP data and inflation report later this week.



On the global front, the US jobs data on Friday came in much below expectations while inflation in China hit a three-year high. In addition, problems for the eurozone don't seem to be ending amid concerns that the debt crisis may affect much bigger economies like Italy and Spain," says Amar Ambani, Head of Research, IIFL - India Private Clients.