The markets remained muted throughout the day on back of selling pressure in IT and PSU stocks. The Sensex opened in the green at 21,042 and touched a high of 21,075; the benchmark closed lower by 153 points to end near day's low at 20,852, the S&P CNX Nifty dropped 39 points to 6,273.
Profit booking in four frontline stocks Infosys, HDFC Bank, SBI and ICICI Bank accounted for 135 points loss on the Sensex.
Asian markets ended mostly higher as commodities continued to have a good run after the announcement of quantitative easing two in which the US government pledged to buy bonds worth $600 billion and the encouraging jobs data.
Japan's Nikkei 225 surged to three month high. ended up 1.1% at 9,732.92 on back of strengthening dollar and weakening Yen. South Korea's Seoul Composite rose 0.2%, while Hong Kong's Hang Seng Index surged 0.4% and China's Shanghai Composite was up 1%.
Rally in commodity related shares has boosted equities across the world, analysts see Federal Reserves action paving a way for asset price inflation.
Puru Saxena, Founder, Puru Saxena Wealth Management said, "the Fed's move will inflate asset prices all over the world, and stock markets will rally given the superior growth rate in emerging markets in Asia. Over time, in two to three years, I expect to see a big asset bubble in the emerging markets."
Markets in Europe were leading the losses in early trades, FTSE 100 and DAX were trading marginally lower, down 0.1% and CAC40 dipped 0.1% as earnings flow reduced and investors squared-off positions in defensive shares.
