Markets turn volatile in late morning trades

Markets have turned volatile in late morning deals. The Sensex touched a high of 17,687 in morning trades after recovering smartly from the negative zone. However, the index has once again pared gains and is no flat at 17,592 - down eight points. Nifty is down 10 points at 5,355.

In Asia, Nikkei is flat at 10,093. Hang Seng and Shanghai Composite have also turned flat at 20,909, and 2,382, respectively.

PSU index has gained 1% at 7,565 on hopes that the government may be able to meet its FY13 disinvestment target of Rs 30,000 crore. Shares of MMTC, EIL and SJVN have surged 1-8% each.

FMCG and auto shares are also in the green. Meanwhile, the BSE metal index has slipped 0.6% at 11,592 after data showed China's manufacturing sector activity shrank in March for a fifth successive month. IT and realty shares are trading flat.

Jindal Steel is the biggest dragger among Sensex stocks -  down 5.8% at Rs 555. According to reports, the increase in steel import costs will effect steel companies and may force them to hike prices. SAIL is down 0.6% at Rs 97.45. Tata Steel has shed 0.5% at Rs 469.

Maruti Suzuki, Infopsys and ICICI Bank are down half a per cent each.

On the other hand, Coal India has added 2% at Rs 338. ITC, Tata Motors, Sun Pharma and OPNGC have advanced 1% each. Other gainers include Sterlite, Hero MotoCorp and Sterlite.

"TATAMOTORS trend is up on charts; whereas resistance is expected at 287;close above 287 would open doors for 295 & 300. HEROMOTOCO has resistance at 1958 close above this level would give a fresh breakout on charts whereas target expected would be 2010 & 2040," said Ravi Nathani, technical analyst, Nsetoday.com.