Sensex opens on a flat note

Markets opened on a flat note this morning following cues from US and Asian bourses.

The Sensex opened at 18,261 but dropped into red. The index was up 37 points at 18,239.

Nifty was up nine points at 5,464.

US markets ended Monday on a flat note following US President Barack Obama's budget speech. Dow slipped five points at 12,268. Nasdaq was up eight points at 2,817. S&P 500 added three points at 1,332.

Asian markets were lacklustre after China announced inflation data. China's consumer price index rose 4.9 percent in January on-year - taking the Shanghai Composite up 17 points. Nikkei was unchanged at 10,726. Hang Seng slipped 40 points to 23,080. Taiwan Weighted advanced 43 points to 8,279.

Back home on Monday, markets witnessed a relief rally with the Sensex jumping 2.6% to reclaim the 18,000 mark. Nikkei also advanced.

India's inflation eased less than expected in January to 8.23%, holding well above the Reserve Bank's comfort zone and reinforcing expectations it will raise interest rates at its March policy review.

The stocks to watch out for the day are Reliance Communications, GSK Pharma, Reliance Infra, Tata Power and Unitech. Tata Steel would be announcing the results later today. The astock was up 0.6% at Rs 624.

Most of the sectoral indices are in the green today - led by consumer durables, capital goods, PSU and oil stocks. However, realty and IT stocks are in the red.

Larsen & Toubro gained 1.5% at Rs 1,685. Tata Motors continued Monday's upmove and added 1% to Rs 1,222.

SBI, Cipla and Tata Capital advanced 1% each. Other stocks on the gainers list were Reliance and ICICI Bank, Maruti Suzuki and NTPC.

Meanwhile, Reliance Communications slumped 2% to Rs 95. Mahindra & Mahindra slipped 2% to Rs 666.

Jaiprakash Associates and TCS dropped 1.4% each to RS 86 and Rs 1,089, respectively.

Hindalco, ITC and ONGC were also in red.