Markets trading flat

Global markets trading lower ahead of US presidential elections

Markets are trading on a flat note in the morning deals on the back of subdued global cues ahead of the US Presidential elections which are due tomorrow. The Sensex has gained 11 points to 18,766 and the Nifty is up 4 points at 5,702.

Meanwhile, Cipla is the top Sensex gainer, up 1.8% at Rs 384. Dr Reddy's Labs, Tata Motors, ITC, TCS, Larsen & Toubro and HUL are also among the gainers. On the other hand, Hindalco, Bajaj Auto, Tata Steel, State Bank of India, Infosys, Wipro and HDFC are among the laggards.

On the sectoral front, BSE healthcare index is the top gainer, up nearly 1% or 70 points at 7,714. Consumer durables, capital goods, PSU, auto and bankex indices are also among the gainers.

Jolly Board has locked in 20% upper circuit at Rs 384 on announcing delisting of the company’s equity shares from the Bombay Stock Exchange (BSE)

Mangalore Refinery and Petrochemicals (MRPL) is trading higher by 5% at Rs 68.45on reporting a manifold jump in September 2012 quarter net profit at Rs 1,185 crore on back of higher refining margins and inventory gains.

Crompton Greaves has tanked 11% to Rs 109 in opening trades after reporting 64% year-on-year (yoy) fall in its consolidated net profit at Rs 42 crore in the September 2012 quarter due to weakness in its overseas operations. Revenues however, grew by 8% at Rs 2,924 crore on y-o-y basis.
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(Updated at 9.20 AM)

Markets have opened on a lacklustre note on the back of subdued global cues. The Sensex has opened weaker by 9 points at 18,747 and the 50-share Nifty has slipped 2 points to open at 5,696.

The Asian markets fell on Monday and the dollar firmed as investors shied away from risk ahead of the closely fought US Presidential election and looked past strong US jobs data to fragile economic growth prospects worldwide.

The political uncertainty in the world's largest economy made investors wary of holdings riskier assets, and their safe-haven bids buoyed the US dollar to two-month highs against a basket of major currencies on Monday.

US President Barack Obama and Republican challenger Mitt Romney were neck-and-neck in opinion polls in the final 48 hours before Tuesday's vote.

Obama's re-election is perceived as negative for equities, while markets see Romney as stock-friendly, analysts have said.

After the US election, Congress must deal with a "fiscal cliff", up to $600 billion in expiring tax cuts and spending reductions that are set to kick in next year, which threatens the US economy.

On Friday, the US markets ended an unusual storm-shortened trading week with a selloff on Friday, as major indexes erased early gains sparked by a stronger-than-expected payrolls report. For the week, the Dow shed 0.1%, but the S&P 500 gained 0.2%. The Nasdaq ended the week down 0.2%.

Back home, index heavyweight Reliance Industries is the top Sensex loser. It has opened lower by 0.6% at Rs 802. Sterlite Industries, Tata Steel, Tata Power, Mahindra & Mahindra, Infosys, ICICI Bank, State Bank of India, Hindalco, HDFC and ONGC have also opened on a weak note.

On the other hand, Cipla, BHEL, Bharti Airtel, Hero MotoCorp, HUL, Larsen & Toubro, Tata Motors and Jindal Steel are among the gainers.

Most of the sectoral indices have opened on a flat note. oil & gas, consumer durables, power, metal, IT and bankex indices are down 0.1-0.4% each. While, healthcare, capital goods, realty, PSU, auto and FMCG indices are up 0.2-0.5% each.

The broader markets are also trading flat. The BSE mid-cap and small-cap indices are up 0.2% each.

The overall breadth is positive as 710 stocks are advancing while 400 are declining.