Markets open flat

Sensex opens higher by 16 points

Markets have opened on a flat note tracking mixed global cues. The Sensex has advanced 16 points to open at 18,345 and the Nifty has opened higher by 2 points at 5,573.

The Asian shares steadied on Wednesday, after a two days of gains, as investors refocused on the risk of a US fiscal crisis following Federal Reserve Chairman Ben Bernanke's remarks that the budget impasse was already damaging growth. Hang Seng advanced 0.3% to at 21,900, Nikkei jumped 1% to 9,235 levels, Taiwan Weighted was flat,  up 3 points at 1,893 and the Shanghai Composite was down 6 points at 2,003.

Overnight, US stocks fell on Tuesday following a two-day rally, after Federal Reserve Chairman Ben Bernanke said the central bank lacks tools to cushion the US economy from the impact of the "fiscal cliff."

Bernanke, in comments before the Economic Club of New York, said the Fed does not have the tools to offset the damage that would result if politicians fail to strike a deal to prevent going off the fiscal cliff. If a solution isn't approved in time, then mandatory tax increases and spending cuts will go into effect early next year.

The Dow Jones industrial average was down 23 points, or 0.18%, at 12,773, S&P 500 Index was down 1 point at 1,385 and the Nasdaq Composite Index was down 6 points, or 0.22%, at 2,909.

Back home, TCS is the top Sensex gainer, up 1.4% at Rs 1,291. Wipro, Cipla, Infosys, Jindal Steel, Reliance Industries, Mahindra & Mahindra, ICICI Bank, Tata Motors, Tata Steel, GAIL India, Hindalco and Sterlite Industries have also opened higher by 0.2-0.8% each.

On the other hand, Bharti Airtel, BHEL, Maruti Suzuki, ITC, Tata Power, NTPC, HDFC, SBI, HDFC Bank and HUL have opened on a weak nopte.

On the sectoral front, the BSE IT index led by gains in the heavyweight stocks is the top gainer. The index has advanced 0.8% to open at 5,678. Oil & gas, metal, healthcare, consumer durables, auto and capital goods indices have opened on a flat note. While, power, FMCG, realty, PSU and bankex indices have opened on a weak note.

The broader markets have also opened on a flat note. The BSE mid-cap and small-cap indices have advanced 0.15% each.

The overall breadth neutral as 600 stocks are advancing while 500 are declining.