Sensex edges lower, Nifty slips below 6200

Indian stock markets edged lower today on weak global cues and cautious stance of investors ahead of the results of the state polls.

Sensex was down 27 points at 20,828 while Nifty was off 6 points at 6,195.

Caution prevailed in the Indian stock markets ahead of the state election results to be announced on Sunday and U.S. monthly employment data, due out on Friday, which could help provide additional clues about potential Fed tapering.

S V Prasad, chairman of Chime Consulting, said the foreign investors would be keeping a close watch on the election results. Since December is a volatile month due to profit-taking by the foreign fund managers, the results of the state polls hold more significance, he added.

Gaurang Shah, assistant vice president of Geojit BNP Paribas Financial Services, said the volatility is likely to increase as this week progresses.

Banking stocks were under some selling pressure after their recent outperformance. The BSE banking index was down 0.75 per cent with ICICI Bank down nearly 1.5 per cent and SBI off 0.5 per cent. 

Most Asian shares slumped on Wednesday as the prospects of a reduction in the U.S. Federal Reserve's stimulus early next year prompted investors to cash in gains from their recent rallies.