Markets continue to trade on a lacklustre note in the late noon deals on the back of profit booking visible in the heavyweight stocks.
The Sensex has slipped 41 points to 18,503 and the 50-share Nifty continues to hold on to the crucial psychological level of 5,600.
The index is down 4 points at 5,605 levels.
According to Ranak Merchant, Technical Analyst - Strategies, Sushil Financial Services, "As Becnhmark Indices have tested 52-week highs in yesterday's trade and European markets are seeing some kind of profit booking, the same can be expected in our markets.
Some profit booking is on the cards and therefore new positions are not advisable from current levels and a traling stop loss needs to be in place for all trading positions."
"Broader range for Nifty for October series is expected to be 5450 - 5700," ads Merchant.
Meanwhile, the Asian markets ended on a weak note as markets paused from sharp gains inspired by the Federal Reserve's aggressive stimulus and turned instead to concerns about the growth slowdown in China.
The Hang Seng ended weaker by 0.3% or 56 points at 20,601, Shanghai Composite slipped 19 points to 2,059 and the Nikkei closed weaker by 36 points at 9,124.
The European markets were also trading lower as investors turned their attention from central bank stimulus to slowing global growth and uncertainty about Spain's desire for an international aid package.
Investors are worried about Spain's willingness to accept an EU/IMF bailout and this has overshadowed the recent progress policymakers have made in fighting the euro zone debt crisis.
CAC40 index was trading weaker by 39 points or 1% at 3,514, DAX shed 87 points or 1.2% at 73,16 and the FTSE slipped 54 points to 5,839 levels.
Back home, soaring vegetable prices pushed up the retail inflation to double digits at 10.03% in August, up from 9.86% in the previous month.
According to the Consumer Price Index data released today, the highest rise in prices was for vegetables which recorded, an increase of 20.79% during the month.
Meanwhile, the Indian rupee strengthened against the US dollar as the rupee recovered to 54.05 levels from 54.36 in the opening deals.
Wipro [ Get Quote ] is the top loser among the Sensex stocks.
It has slipped 4% to Rs 370. TCS [ Get Quote ], Reliance Industries [ Get Quote ], Hindalco [ Get Quote ], NTPC, Tata Motors [ Get Quote ], HDFC [ Get Quote ], ICICI Bank [ Get Quote ], Cipla, Tata Steel [ Get Quote ] and Tata Powewr are also trading weaker by 1-2.7% each.
On the other hand, BHEL, JIndal Steel, SBI [ Get Quote ], Gail India [ Get Quote ], Infosys [ Get Quote ] ITC, Bharti Airtel [ Get Quote ] and Mahindra & Mahindra are among the gainers on the Sensex.
Most of the sectoral indices are trading on a flat note. The BSE PSU index is the top gainer with gain of 1%. Power, bankex, realty, FMCG and capital goods are up 0.4-0.5% each.
At the same time, oil & gas, consumer durables, IT, metal and auto indices are trading in the red.
Shares of sugar manufacturing companies are in demand with most of the frontline stocks up over 4% on expectation of huge demand ahead of the festive season.
Among the individual stocks Shree Renuka Sugars [ Get Quote ], Bajaj Hindustan [ Get Quote ] and Dhampur Sugar Mills [ Get Quote ] have rallied 6% each on the Bombay Stock Exchange. Balrampur Chini Mills [ Get Quote ], Triveni Engineering and Industries and Dharani Sugars and Chemical are up 4-5%.
Sintex Industries [ Get Quote ] is trading higher by 3% at Rs 64.05, extending its previous day's 6% rally on getting shareholders approval for fund raising up to Rs 1,800 crore.
Shares of power related companies are in limelight on the bourses on reports that the government is likely to clear to restructure the debt of state electricity boards (SEBs) and power distribution companies (discoms) to revive the ailing sector.
The broader markets are outperforming the benchmark indices. The BSE mid-cap index is up 0.8% 6,369 and the small-cap index is up 0.7% at 6,744.
The overall breadth is positive as 1,606 stocks are advancing while 1,170 are declining.