Markets have pared early gains and are now trading absolutely flat as sharp gains in tech shares failed to offset losses in FMCG, financials and index heavyweight Reliance Industries.
Meanwhile, below estimate November industrial output also raised concerns over growth recovery in Asia's third-biggest economy fueling selling pressure on infrastructure stocks.
At 2:25PM, the 30-share Sensex of the Bombay Stock Exchange gained 20 points and traded at 19,684.55 and the 50-share Nifty fell 11points at 5,957.65 .
India's index of industrial production (IIP), measuring output at factories, mines and utilities, contracted by 0.1% in November following a revised 8.3% rise in October.
Investor's however, traded cautiously optimistic amid significant buying witnessed in BSE-IT index that surged over 10% today. Infosys, the bellwether stock of Information Technology index, posted bets gains in three years intra-day after a better-than-expected third quarter performance today fueling risk appetite.
Asian markets traded mixed as China’s inflation accelerated and Japan approved 10.3 trillion yen ($116 billion) of stimulus measures.
Hong Kong's Hang Seng fell 0.4% to 23,264, Taiwan's Weighted index rosel 0.1% to 7,819, Singapore's Straits Times was down 0.4% to 3,213 . Also China's Shanghai Composite declined 1.8% to 2,243 while Japan's Nikkei rose 1.4% to 10,801.
Meanwhile, European markets opened on a positive note. France's CAC gained 0.15% to 3,708, Germany's DAX rose 0.1% to 7,714 while UK's FTSE was up 0.1% to 6,108.
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Back home, barring IT, technology, consumer durables indexes, all sectoral indices dropped with FMCG, oil & gas, PSU, power, real-estate, banks sectors leading declines on BSE.
Among key Sensex stocks, ONGC dropped 3%, ITC and HUL were down over 2.5% each, Bharti Airtel declined 1.2% , BHEL declined 2%, among banks, SBI and ICICI Bank dropped 1.5% each while Reliance Industries fell 1.2% on BSE.
Among gainers, Infosys gained 16%, Wipro and TCS rose 4-5% while Sterlite Industries was up 1% on BSE.
Shares of information technology (IT) companies are in focus after Infosys has reported a better-than-expected net profit for the third quarter ended December 2012 (Q3) and upped its full year guidance.
Infosys has rallied 13% to Rs 2,628, its sharpest single day gain in past one decade on the Bombay Stock Exchange (BSE). Tata Consultancy Services (TCS), Wipro, Mahindra Satyam, Hexaware Technologies, CMC and Tech Mahindra are trading higher by 2-4%.
The other key notable movers are, Scooters India that has locked in lower circuit of 5% at Rs 40.25 on reports that the government deferred the revival plan of the company.
Parkeh Aluminex has tanked 10% to Rs 183, locked in maximum lower permissible limit for second day in a row after the company said Mr Amitabh Parekh, the founder chairman and managing director of the company expired on January 06, 2013
The broader markets declined with mid-caps and small-caps falling 1% each on BSE.
The market breadth was negative. Out of 2,922 stocks traded, 1,819 stocks declined compared to 959 advances on BSE.