Markets flat in noon trades

The benchmark indices have turned flat in noon trades as the smart rebound from intra-day lows proved to be short-lived. The Sensex has recovered more than 100 points from the lows of the day and is now quoting at 18,280, higher by 11 points and the Nifty is at 5,488, up two points. The broader market indices are trading flat, but with a positive bias. The midcap index is at 6943, higher by 14 points and the smallcap is at 8306, up 18 points. Metal and oil stocks are having a bad session of trade.

Markets opened lower following weak global cues after US reported disappointing economic data on Friday. Hang Seng and Nikkei had lost nearly a percent each in the backdrop of a 1%--slide in Dow Jones, which broke the crucial 12,000 level to 11,952, recording it lowest close since March 18. But a recovery in Hang Seng and buying interest at lower levels seem to have facilitated the u-turn in our bourses back home. The European markets, however, are seeing no respite in selling pressure, with the FTSE, CAC and DAX shedding upto a percent each in early trades.

Hindalco has weakened by 2% at Rs 180 to top the loser's list on the BSE. RIL has shed 1.8% at Rs 926 as the markets apparently gave a thumbs-down to its decision to buy Bharti Enterprises’ stake in two joint ventures with France’s AXA. Reports that oil regulator DGH refused to accredit three natural gas discoveries made by the company at its KG-D 6 block seem to have also dampened sentiments towards the heavyweight counter. SBI has lost 1% at Rs 2218. TCS, Tata Steel and DLF are the other major losers on the BSE.

On the other hand, NTPC has strengthened by 2.4% at Rs 180, Jaiprakash Associates has gained 2.3% at Rs 83 and Cipla has added 2% at Rs 338.

The market breadth continues to be negative. Out of a total 2,819 stocks traded on the BSE, 1,403 have declined while 1,312 have advanced.