Markets open on a flat note

BSE Capital Goods index down 1%

Markets have started the trading session on a flat note with the Sensex and the Nifty swinging between negative and positive zone. By 9:40 Sensex was up 15 points at 17,407 and the 50-share Nifty was up 4 points at 5,304.
 
On the global front, US stocks slipped on Wednesday with the Dow Jones industrial average closing 0.6% lower at 13,033. The Standard & Poor's 500 Index shed 0.4% to 1,385.

Asian shares moved in a narrow range on Thursday after the previous day's rally as investors grew cautious ahead of a key Spanish bond sale. MSCI's broadest index of Asia-Pacific shares outside Japan was nearly flat while Japan's Nikkei average opened down 0.9%.

Back home, the Nifty is likely to seek support around 5,280-5,270, and face resistance around 5,320-5,330, technical analysts say.

On the sectoral front, BSE Healthcare index is up by nearly 1%. Sectors like Auto, Consumer Durable, FMCG, Technology, Oil & Gas and PSU are trading marginally positive.

However, BSE Capital Goods index has plummeted by 1% followed by counters like Realty, Banks, Metal, FMCG and Power, all declining marginally.

From the Capital Goods pack, BHEL and L&T have plunged between 1-2%.

Banking shares like ICICI Bank and SBI have declined by nearly 1%. However, HDFC Bank is trading higher by 0.5%. The bank reported a 30.3% rise in net profit to Rs 1,453 crore, beating analyst forecasts, helped by higher fee income and credit demand as well as lower provisions for loan losses.

Metal stocks like Sterlite, Hindalco, JSPL and Tata Steel have slipped between 0.2-1%.

Other notable losers include DLF, Wipro, Hero Moto, GAIL India and TCS.

On the gaining side, Tata Power has surged over 1%. Other frontline gainers include Sun Pharma, Infosys, Maruti Suzuki, Bharti Airtel and Cipla.

The broader indices are trading marginally positive – BSE Midcap and Smallcap indices are up 0.3% each.

Dunlop India Limited has hit the upper circuit of 20% at Rs 11.68 after the Ruia Group firm said that it has convened an Extraordinary General Meeting (EGM) on April 28 to seek the shareholders' approval on the proposal to convert the Rs 60 crore loan into shares.

The market breadth in BSE remains healthy with 798 shares advancing and 473 shares declining.