Sensex flat; blue-chips lead on earnings

MUMBAI (Reuters) - The Sensex and Nifty were trading flat on Tuesday, while blue-chips such as ICICI Bank gained on value-buying and short-covering after earnings.

ICICI Bank rose 5.4 percent and was headed towards its best single-day gain in nearly a year after it reported a 10 percent rise in Jan-March net profit and said it expects the new financial year to be better in terms of bad loans.

However, cautious sentiment prevailed ahead of the monthly derivatives contract expiry due on Thursday.

"Market outlook is range-bound. There are individual stock ourperformances led by earnings. We advise clients to be cautious for the time being," said Suresh Parmar, head, institutional equities at KJMC Capital Markets.

 

Both the Sensex and Nifty closed at their lowest level since Jan. 7 on Monday and the NSE index fell below its 200-day moving average for the first time in 15 months.

Blue-chips led the gains. Maruti Suzuki , which gained 3 percent in the previous session, is up 2.8 percent after its Jan-March earnings beat forecasts.

Some of the recent underperformers also gained. Bharat Heavy Electricals Ltd , which fell 15.5 percent so far this year till Monday, gained 2.14 percent.

Among other gainers, state-run oil marketing companies rose with Hindustan Petroleum Corp adding 2.4 percent on expectations of no subsidy burden and low crude prices.

However, technology shares fell with Infosys falling 1.3 percent, down for the third straight session after its earnings on Friday missed expectations.

(Reporting by Indulal PM; Editing by Sunil Nair)