Markets open on a flat note

The markets opened on a flat note this morning. The Sensex is down 32 points at 17,433. Nifty is down 10 points at 5,308.

The US markets were flat on Friday. On Monday, Asian markets are trading mixed. Hong Kong is up over half percent, Japan is up 0.3 per cent, while Shanghai is trading flat.

The overall trend will be determined by how the market reacts to the fine print of the budget announcements. From a technical point of view, if the Sensex sustains over 17,200 points, then a deeper correction is ruled out. If the Sensex breaks the 17,200 level, it could fall to 16,500 by March end.

Most of the sectoral indices have dropped into the red in opening trades. BSE bankex has slipped 1% at 11,829. PSU, metal and realry shares have also weakened. However, consumr durables and auto indices have opened marginally higher.

Banking names such as HDFC bank and SBI have dropped. HDFC Bank has slipped 2.2% to Rs 497. TCS, ONGC and Jindal Steel have shed around 1.5% each. Among other losers are Coal India, Maruti Suzuki and Bajaj Auto.

On the ther hand, Mahindra & Mahindra has added 1.6% at Rs 688. NTPC and Tata Motors have added 0.7% each.

Reliance Communications has opened 2% higher at Rs 94 on reports that the group company - FLAG Telecom - has filed a prospectus in the Singapore Stock Exchange to list and divest 75% stake in the submarine cables business for $1.25-1.5 billion.

Pantaloon Retail has added 2% at Rs 159 on reports that the company will become debt–free in a year.

Benefits for the power sector such as duty exemption for LNG, allowing external commercial borrowings and extension of tax holiday has taken Reliance Power and Adani Power up by around 1% each.

The thrust on low cost housing has led HDIL up by 1.3%.

The increase in duties on gold and silver has taken Titan shares up 1% at Rs 235.