Markets flat ahead of Q4 earnings

Broader markets gains nearly 1%, out-performing benchmark indices

Markets traded flat in the late morning session this Monday as investors preferred to remain on the side-lines ahead of the fourth-quarter earnings announcement starting April 12.

At 11:.35AM, the Bombay Stock Exchange's 30-share index Sensex gained 5 points at 18,870.81 while the National Stock Exchange's 50-share Nifty dropped 5 points at 5,699.

Overnight, in the US markets, the Institute for Supply Management said its index of national factory activity fell to 51.3 from 54.2 in February, with new orders, a key indicator of future growth, accounting for much of the fall.

Meanwhile, Asian shares inched higher with investors growing cautious ahead of new indicators that could flag slowing U.S. economic momentum.

The MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.3%, underpinned by higher Australian and Chinese shares.

South Korean shares were barely changed while Japanese stocks slumped as investors rushed to book profits after a stellar first-quarter showing.

The Nikkei stock average tumbled as much as 2.7% to a one-month low before trimming most of the losses to fall 0.2% by midday. The BOJ is expected to announce fresh stimulus measures under its new leadership in line with Prime Minister Shinzo Abe's drive to reflate the economy.

Back home, among the sectoral indices, Auto, Realty, IT, FMCG and Bankex indices traded in the negative, down 0.5-1%. On the other hand, Metal, Capital Goods, healthacarer and PSU indices traded positively, gaining 0.3-0.7%.

The top gainers among the Sensex were  Sterlite Industries up nearly 3%, Sun Pharma and Cipla gaining 2% and 1% respectively, Wipro rose 2% while Reliance Industries gained 0.6% on BSE.

Among the ones in the negative, all the major auto names like Tata Motors, Bajaj Auto, Maruti Suzuki and Hero MotoCorp started off 0.2-1% lower on account of weak sales numbers.

From the financials, ICICI Bank and HDFC Bank was weaker by 0.2-0.6%.

The key notable stock movers were Maruti Suzuki India has moved higher by over 2% at Rs 1,310, bouncing back almost 4% from intra-day’s low after reporting 9.5% month-on-month growth in car sales at 119,937 units for the month of March.  The country’s largest car manufacturer had sold 109,567 units in February 2013.

Bajaj Auto is trading lower by 2% at Rs 1,752 after reporting 10% year-on-year (yoy) drop in total sales at 301,231 units for the month of March 2013. The country’s second largest two-wheeler maker had sold 335,515 units during the same month previous year

The broader markets were up with mid-caps and small-caps gaining nearly 1% on BSE.

The market breadth was strong. Out of 1,106 stocks traded, 716 stocks gained compared to 343 declined advances on BSE.