Markets trading flat with negative bias

BSE Capital Goods index down 1%

Markets are trading flat with negative bias in the early trades. By 9:40, Sensex declined by 38 points at 17465, and the Nifty down 13 points at 5,319 levels

On the global front, US stocks fell for a second day on Thursday as the labour market data showed signs of weakness. The Dow Jones industrial average fell 0.5% to end at 12,964. The S&P 500 Index dropped 0.6% to 1,377 levels.

Asian shares slipped on Friday as disappointing US economic data stirred doubts about the strength of recovery. MSCI's broadest index of Asia Pacific shares outside Japan and Japan's Nikkei share average both edged down 0.2%.

Back home, the Nifty can face resistance around 5,350-5,365 and get some support around 5,315-5,300 levels, technical analysts suggest.

On the sectoral front, BSE Capital Goods and Realty indices have plummeted by nearly 1% followed by counters like Metal, Banks, Power, Oil & Gas, Auto and PSU, all declining marginally.

On the gaining side, BSE Consumer Durable index has gained over 1% followed by sectors like Technology, Healthcare and FMCG, all rising slightly.

Tata Motors is the top Sensex loser, down over 1% after touching a new high yesterday. Tata Motors entered the elite club of companies with Rs one trillion market value on the back of strong global sales for the month of March.

From the Metal space, Coal India, Hindalco, JSPL, Sterlite and Tata Steel have slipped between 0.1-1%.

Index heavyweight Reliance Industries have declined nearly 1% ahead of the March quarter results to be announced today.

Banking stocks like HDFC Bank, ICICI Bank, SBI and HDFC have plunged between 0.1-1%.

On the winning side, Auto shares like M&M, Maruti Suzuki, Bajaj Auto and Hero Moto have gained by almost 1% each.

Other notable gainers include ONGC, Cipla, Sun Pharma, Wipro, Infosys, GAIL and Bharti Airtel.

Meanwhile, BSE Midcap index has inched up by 0.12% whereas BSE Smallcap index is gained by nearly 0.3%.

Ambuja Cements is trading lower by 2.2% at Rs 161 after reporting 23% year-on-year (y-o-y) drop in its net profit at Rs 312 crore for the first quarter ended March 2012.

Escorts is trading higher by 4% to Rs 84.20, extending its previous day’s 5.5% rally after its promoters hike their holding in the company by maker by acquiring 4% through open market purchases on Wednesday.

The market breadth in BSE remains positive with 767 shares advancing and 609 shares declining.