The stock markets seem to be in correction mode with more than 400 points lost at 14.18 p.m. IST. BSE was down by 407 points and was at 17366.20 levels. NSE Nifty was down by 145 points at 5040 at 14.20 p.m.

Political issues between Congress and Left is one of the major reasons for today’s downfall in markets. Market analysts feel that valuations were bit over stretched and the stocks may see some amount of correction. The markets have gone up very fast in past few trading sessions and a correction will be healthy sign.

In case the political scene goes worse and mid-term elections become un-avoidable, the stock markets may react negatively. In such a case, the markets may see a correction up to 16,000 levels.

Midcaps suffered in today’s market while Technology stocks are looking strong. Technology major Infosys may surprise markets in a positive way with results. Technology stocks did not participate in recent stock market rally. So their valuations are looking good at current levels.

Satyam, TCS and HDFC were holding in the green with marginal gains. Reliance Energy, Ranbaxy Labs, ACC and Tata Steel were among top losers in today’s trade. Ranbaxy Labs was trading at 409, down by nearly 5.5%.