Markets open flat, IT shares weigh

Markets opened marginally lower following subdued trade across Asia and weakness in IT shares. The Nifty was up 6 points, at 5828 and the Sensex gained 24 points, at 19,411 in opening trades.

Infosys kick started the earnings season on a negative note as results were below analysts’ expectations. Brokerages expect a bumpy ride in the markets going forward if more front line companies undershoot estimates. Volatility is expected to remain high during the earnings season. The India VIX (Volatility Index) on NSE shot up 6% to 22 level on Friday.

Edelweiss Research in the morning said, "Nifty is likely to continue the consolidation in the near-term with strong support at 5700," based on technical charts. Edelweiss expects an eventual break of the 5950 resistance which may resume the uptrend that commenced in late March for a test of 6100.

In Asia Japan's Nikkei Stock Average was down 0.2% as weakening Dollar weighed on technology exporter shares. Hang Seng advanced 0.5% but markets were choppy after People's Bank of China  raised bank's reserve requirement by 0.5% for fourth time this year. Shanghai Composite was up 0.3%. South Korea's Kospi Composite edged up 0.1%, Taiwan's weighted index climbed 0.3% and Singapore's Strait Times added 0.4%.