Markets erase gains, trade flat

Realty index slumps

Markets have erased all morning gains and is absolutely flat in noon trades. The Sensex, after touching a high of 19,967 pared gains after telecom major - Bharti Airtel posted a dissapointing set of numbers. The BSE benchmark index was unchanged at 19,897. Nifty was flat at 6,035.

Broader markets outperformed and held on to gains. The Mid-cap index was up 0.5% at 7,003. Small-cap index was also up half a per cent at 7,105.

"Earnings have been above expectations but top-line of most of the key companies slowed down on back of slow economic growth. Therefore, I would say a chance of downgrade is very low but an upgrade may not be possible this time around as one should wait to see the interest rate cycle to come down before taking that call. We should wait for meaningful fiscal consolidation steps in Budget and rate action by the Reserve Bank of India (RBI) in March to see an upgrade," said Sandip Sabharwal, CEO, Portfolio Management Services, Prabhudas Lilladher.

China's giant manufacturing sector extended its mild recovery in January with weak foreign demand still crimping growth, a pair of surveys showed, underscoring that the country's rebound from its worst downturn in 13 years remains modest. In Asia, Hang Seng has slipped 0.3% at 23,636. Shanghai Composite is flat at 2,385. Nikkei is up 0.8% at 11,236.

BSE consumer durables has gained 2% at 7,733. Metal, healthcare, oil & gas and capital goods have advanced substantially in trades. On the other hand, BSE realty index is down 1% at 2,219. Bankex and FMCG indices were also showing some weakness.

Bharti Airtel has managed to recover from its lows and is now flat at Rs 339. The stock had fallen 3% after posting dissapointing set of numbers. Profit at Bharti Airtel Ltd, India's top mobile network operator, fell for the twelfth quarter in a row and missed estimates by a wide margin, dragged down by higher costs. The company saw its net profit fall to Rs 284 crore in the third quarter that ended December 31, from Rs 1,011 crore a year earlier.

HUL is down 1.5% at Rs 466. Hero MotoCorp, ITC, HDFC Bank are also in the red. Meanwhile, Cipla, Bajaj Auto and Maruti Suzuki are up 1-2% each. Among ther gainers are Reliance, Jindal Steel and Larsen & Toubro.

In individual stocks, Mangalore Refinery and Petrochemicals lost 2% to Rs 62.75 after the company reported net loss of Rs 360 crore in Q3 December 2012, as against net profit of Rs 110 crore in Q3 December 2011. On the other hand, Jet Airways (India) rose 2% to Rs 636, with the stock extending Thursday's 4.34% gains triggered by speculation that Etihad Airways will buy a stake in the firm.

BSE market breadth is positive. Out of 2,359 stocks traded, 1,281 stocks have advanced while 967 stocks have declined.