Markets erase early gains, auto and IT shares drag

Benchmark indices have erased early gains and are trading in a narrow range led by selling among software, auto shares. All eyes are on the Economic Survey to be tabled in Parliament today.

By 10:30, the Sensex gained 3 points at 19,018 mark and the Nifty was down 5 points at 5,757 levels.

On the global front, Asian shares rebounded on Wednesday as US equities rose on solid data and the Federal Reserve's affirmation of its commitment to monetary stimulus, but investors remained wary of political gridlock in Italy reigniting the euro zone financial crisis.

Nikkei has declined by almost 0.5%. However, Strait Times, Hang Seng, Taiwan, Kospi and Shanghai gained between 0.4-0

Back home, the rupee appreciated by 19 paise to Rs 53.90 against the dollar in early trade at the Interbank Foreign Exchange (forex) market today on selling of the US currency by exporters

BSE Auto, Healthcare and IT indices have declined by almost 1% each. However, BSE FMCG and Capital Goods indices have gained by nearly 1% each.

The main losers on the Sensex at this hour include GAIL, Tata Motors, Dr Reddy’s, Hero Moto, Hindalco, Infosys, ONGC and M&M, all falling down between 1-2%.  

Ranbaxy Laboratories is trading lower by 4% at Rs 400 in morning trades on NSE, extending its previous day’s about 4% fall, after reporting a lower-than-expected numbers on the profit front for the quarter ended December 31, 2012 (Q4).

Bharti Airtel is the top Sensex gainer, up by over 3%. Morgan Stanley raised its rating on Bharti Airtel Ltd to "overweight" from "equalweight," citing positive factors for the sector such as rising tariffs and data volumes, falling capital spending and eased competitive intensity.

Among other shares, Suzlon Energy has rallied almost 8% to Rs 22.90, after India’s largest wind-turbine maker said that it wins 103-megawatt (MW) order from Oil & Natural Gas Corporation Limited (ONGC).

CORE Education and Technologies has tanked 47% to Rs 58.80 on back of heavy volumes on NSE despite the company clarified that the pledged shares were not sold in the market. The stock opened at Rs 113 and hit a high of Rs 118 in morning trades on NSE.

The broader markets have lost ground and are underperforming the benchmark indices. The market breadth in BSE turns weak with 1,156 shares declining and 817 shares advancing.