Markets were trading flat after opening lower on back of weak global cues and selling pressure in auto stocks. The Sensex surged 22 points, at 20,207 and the Nifty edged lower two points, at 6048.
Asian markets were trading lower after investors turned to the sidelines on expectations that U.S. Nonfarm Payrolls data, out later today which may dissapoint. Japan's Nikkei Stock Average was flat, at 10,534. Hong Kong's Heng Seng was up 0.2% at 23,76, metal and energy producers weighed on the index. China's Shanghai Composite was trading higher by 1.4%, at 2,863. Straits Times and Taiwan Weighted were down 0.3% and 1.1% each. South Korea's Seoul Composite remained unchanged at 2079.
Overnight markets in the US ended in the red on back of losses in retail and telecom shares. Resurgence of euro-zone debt worries also put pressure on Wall Street. The Dow Jones Industrial Average closed down 0.2%, at 11,697, the Nasdaq Composite edged up 0.3%, at 2,710, and the Standard & Poor’s 500-stock index shed 0.2%, at 1,274.
The weekly inflation data loomed on the markets yesterday, dragging the Nifty down for the third consecutive session on account of selling in realty, capital goods, auto and banking stocks. Emkay in a research note said," The next immediate support is at 6019 which is the 20 Day Simple Moving Average. Moreover the 50 and 20 Day Simple Moving Averages indicate that last three days of fall was a mere correction." Emkay continues to maintain a bullish view on the markets.
IT stocks were leading the gains ahead of the Infosys results next week. The BSE IT index was up 0.5%. HCL Tech surged 1.8%, Mphasis gained 1.3% and Wipro zoomed higher by 0.6%.
Auto stocks were the top sectoral loser, down 0.7%. Ashok Leyland declined 2.2%, followed by Mahindra & Mahindra, down 2.1% and Tata Motors slipped 1.3%.
Among individual stocks Reliance Communications was up 0.8% this morning after Brokerage BNP Paribas upgraded the stock from reduce to buy.
Additionally Reliance Infratructure was on the buzzer, up 0.9% on reports that promoters may raise stake to 48%, by investing Rs 1,600 and converting warrants.
Steel Authority of India was down 1.5% on reports that it is scouting for a technology provider for the production of “cold rolled grain oriented” steel in India and plans of stake sale in FY11.
Broader markets were also trading flat, the smallcap index was up 0.3% and midcap index was flat at 7658.
ICICI Bank, up 1.4%, Bajaj Auto, up 1.3% and Cipla, up 1.2% were the top gainers on Sensex. HDFC Bank declined 2%, Maruti Suzuki fell 1.1% and Hero Honda lost 1%, were the prominent losers.
The market breadth was positive 1266 stocks advanced for 937 stocks which declined.