Markets end flat ahead of Q3 earnings

Key share indices ended flat on Monday, amid a volatile trading session, as investors turned cautious ahead of the third quarter (Oct-Dec) earnings that will be released this week.

The 30-share Sensex ended at   15,820 down 20 points and the 50-share Nifty ended at 4,744 down 3 points.

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(Updated at 14:57 hrs)

The markets have trimmed the losses and recovered from the day’s low tracking gains in Europe. The recovery was led by gains in capital goods, power, banks and realty.

At 1430 hrs, the Sensex was down 65 points at 15,786 while the 50 share Nifty slipped 12 points at 4,735.

On the global front, Asian markets ended on a mixed note. Hang Seng and Shanghai Composite surged between 1-2%. However, Kospi, Strait Times and Taiwan Index ended lower.

Signs of improvement in the German and US economies helped offset concerns over the prospects for euro zone debt auctions later this week, lifting the single currency and European shares on Monday.

Shares of power companies were the top gainers and the BSE Power index has surged by 1.5%.

Tata Power Company has risen by 1% on reports that the company has commissioned a unit of its 4,000 mega watts (MW) power station at Mundra in Gujarat. Other power stocks like, GVK Power & Infrastructure, GMR Infra, Reliance Power, JSW Energy, Reliance Infrastructure, Adani Power , and NHPC have spurted between 1-3%.

In the Capital goods space, BHEL is the top Sensex gainer, up 2.7%. L&T has gained marginally.

Technology majors Infosys was up 0.4% ahead of its Oct-Dec results on Thursday and TCS also gained 0.4%.

Banking majors like HDFC Bank and ICICI Bank have surged by nearly 1% each.However, SBI is down 2% on concerns of rising non-performing assets. HDFC is down 1% ahead of its Oct-Dec results on worries that growth in home loans would be impacted following poor home loan demand on the back of rising interest rates.

However, BSE Auto and Oil & Gas indices continue to reel under selling spell, down by almost 1% each.

Tata Motors and Bajaj Auto have slipped by nearly 1% each. However, Maruti Suzuki has gained by almost 2%.

Telecom major Bharti Airtel has plunged by nearly 3% as sources reports that the telecom department plans to impose penalties totaling Rs 1,594 crore on five mobile phone companies for allegedly understating revenues and hence paying lower revenue share during 2006-07 and 2007-08.

BSE Metal index has fallen by 1%. Jindal Steel and Power, Tata Steel, Sterlite and Hindalco have melted between 1-3%.

Coal India has fallen by 2% on reports that the Calcutta high court has asked the company not to implement the new pricing regime in West Bengal till 16 January 2012 after public interest litigation was filed. The next hearing will be on 16 January 2011.

Index heavyweight RIL declined 0.9%. ONGC is trading marginally lower.

The broader markets continue to outperform the benchmark indices. BSE Midcap and Smallcap indices have gained by almost 1%.