The benchmark Nifty was lacklustre in trade and was trying very hard to get back above 6000 level. But consistent selling especially in banks capped the upside. ONGC, Reliance Communications, Cairn, BHEL, Wipro, JSPL, SAIL, DLF, ACC and Sun Pharma were also on sellers' radar.

On the other side, buying was seen in Bharti Airtel, HDFC, Infosys, Reliance Industries, Cipla, L&T, Dr Reddy's Labs along with power, FMCG, auto and select metal companies' shares.

Lalit Thakkar, managing director (institutional) at Angel Broking said he will not be surprised to see this 5,940 level being violated and market coming down to lower levels at around 5,600-5,700 level.

However, he added, a 5-8% correction is no reason to worry. “Even if the market gets derail by 10%, if you are able to get good stories of 20-25% you can still make decent money in the market,” he felt.

The 30-share BSE Sensex was trading at 19853, down 11 points and the 50-share NSE Nifty was at 5974, down 14 points. However, the Nifty November futures were trading at 21 points premium.

Indian markets were volatile despite positive global cues. Asian markets ended positive; Hang Seng was up 1.8%, Nikkei up 2% and Kospi up 1.6%. Shanghai gained 0.9% and Taiwan went up 0.34%. Even European markets were trading 0.7-1%.

Top losers - Reliance Communications was at Rs 151.60, down 6.16%; Reliance Capital was at Rs 716, down 4.44%; Axis Bank was at Rs 1,408.80, down 4.11%; ICICI Bank was at Rs 1,156.90, down 3.78%; ONGC was at Rs 1,258.80, down 2.68%; Jindal Steel was at Rs 660.10, down 1.77% and HDFC Bank was at Rs 2,333, down 1.53%.

Top gainers - Hero Honda was trading at Rs 1,912.45, up 5.22%; Cipla was at Rs 351.85, up 3.71%; Bharti Airtel was at Rs 324.65, up 3.57%; Hindalco was at Rs 217.80, up 2.78%; Suzlon Energy was at Rs 53.05, up 1.92% and Sterlite Industries was at Rs 176, up 1.97%.

In smallcap space, Hind Dorr-Oliver, Suashish Diamond, Gujarat Amb Exports, Amtek India and Rain Commodities gained 6-10.9% while JVL Agro, Newtime Infra, Karuturi Global, SE Investments and MSK Projects lost 7.5-9%.

In midcap space, KGN Industries, Den Networks, GMDC, India Infoline and IOB were up 2.5-6.5% while Indiabulls Financial, MVL, Kwality Dairy, Ruchi Soya and Escorts fell 4.6-7%.

About 901 shares advanced while 2273 shares declined on BSE. Nearly 277 shares were unchanged.

Crude oil was trading at USD 81.5 a barrel, up USD 1 over previous close on the New Your Mercantile Exchange.