Sensex slips below 27000 mark, down 175 points; Nifty ends at 8,143

The domestic markets slipped in red after hitting their highest in nearly two months as software stocks declined led by Infosys, while worries that retail inflation for September could edge higher also weighed on the market.

The consumer price index (CPI) inflation or retail inflation rose up to 4.41 per cent in September as compared to 3.74 per cent in August, the government data released later in the day showed.

The S&P BSE Sensex ended the day 175 points down at 26,904.11, while broader CNX Nifty slipped below its crucial psychological level of 8,150 to end 46.10 points down at 8,143.60.

"There has been Infosys-led falls but Infosys earnings cannot be extrapolated to the entire earnings season," said Aneesh Srivastava, chief investment officer at IDBI Federal Life Insurance Co.

Technology stocks led the declines. Infosys was the top Sensex loser and ended 4% down, while Tata Consultancy Services lost 1.6 per cent ahead of its Q2 numbers to be announced on Tuesday.

Among gainers, metal stocks soared for a second day after commodities group Glencore said it would cut its zinc output by a third, sparking a short-covering rally across the board.

Vedanta ended 6.9 per cent up, while Hindalco Industries closed 5.7 per cent down.

Among Asian markets, China's Shanghai Composite ended the day 3.28 per cent higher, Hong Kong's Hang Seng settled 1.21 per cent up, while Japan's Nikkei added 1.64 per cent at close.

On Friday, US stocks extended gains after minutes of the Fed meeting indicated it may hold rates for now. Further, the disappointing jobs data also reaffirmed Fed's decision to keep status quo. The markets ended 3.3% higher in the week making it the best weekly gains in 2015.