Markets flat, Consumer durables fall

Markets are trading on a flat note in noon deals. The Sensex is up 40 points at 16,048 and the Nifty is at 4,812, higher by 7 points.

Earlier in the day, the markets had witnessed a weak opening. The Sensex opened at 15,868 and touched a low of 15,849. However, the index recovered smartly in late-morning trades on the back of GDP data which was in line with analyst expectations.

According to government data, Q2 GDP growth stands at 6.9% compared to 7.7% q-o-q. Manufacturing sector has grown at 2.7%. Construction sector at 4.3% vs 6.7% (y-o-y). Services growth is at 9.3%. Mining sees a negative growth at -2.9%.

HDFC Bank is the top gainer among the Sensex stocks, up 2% to Rs 443. Bharti Airtel is trading higher by 1.7% at Rs 380. ONGC, TCS, HUL, NTPC,Sun Pharma, Maruti Suzuki, Bajaj Auto, Wipro, HDFC and DLF are also trading higher by 0.6-1.6% each.

On the other hand, Sterlite Industries is the top loser, down 1.9% to Rs 100. Tata Motors, Mahindra & Mahindra, ICICI Bank,BHEL, L&T, Tata Power and J P Associates are also among the losers.

Among the individual stocks, JSW Energy has moved higher by 8% to Rs 44.25 on reports that the company may get a go-ahead from the Maharashtra Electricity Regulatory Commission (MERC) to sell power to its group company - JSW Ispat by the year end.

Shares of select retail companies have rallied in early trades after Prime Minister Manmohan Singh strongly defended the Cabinet’s decision to allow foreign direct investment in retail sector and ruled out a rollback.

GEI Industrial Systems has jumped 2.5% to Rs 122 after the company reported that it has bagged new order worth Rs 40.30 crore.

Consumer Durable stocks are amongst the worst hit in trades thus far. BSE Consumer Durable index is down 2% or 117 points to 5,644 levels. Capital Goods index is also trading lower by 1% or 78 points at 9,607. Realty, Auto, Metal, Healthcare and Power indices are also trading on a weak note.

Meanwhile, BSE Teck index is the top sectoral gainer, up 0.4% at 3,335. IT, FMCG, banking and PSU stocks are also witnessing some bit of buying.

C Mahendra Exports is the top loser from the consumer durable space, down 5.2% at Rs 133. Titan Industries, VIP Industries, Videocon, Bajaj Electricals, Whirlpool and TTK Prestige have also shed 0.5-4% each.

The broader markets continue to reel under selling pressure. The BSE mid-cap index is down 35 points at 5,629 and the small-cap index is at 6,110, down 32 points.

The overall breadth is negative as 1,400 stocks are advancing while 1,045 are declining.