Markets open flat ahead of key economic data

investors turned cautious after gains in the past few sessions and ahead of key economic data due on Friday.

Markets opened flat on Thursday after investors turned cautious and booked profits at higher levels ahead of key economic data due on Friday.

At 9:35AM the 30-share Sensex was down 5 points at 19,985 and the 50-share Nifty was down 3 points at 6,066.

Investors are likely to remain cautious ahead of the consumer price index and industrial production data due on Friday, followed by wholesale inflation data on Monday.

Nifty is likely to seek support around 6020-5990 and may face hurdle around 6100-6130, technical analysts suggest.

Encouraging global data and Wall Street’s extended record run underpinned Asian shares on Thursday, with Japanese stocks leading the way to within striking distance of fresh five-year highs. Nikkei and Straits were up over 0.3-0.6% each while Shanghai Composite and Hang Seng were down 0.3-0.6% each.

Among the sectoral indices on the BSE, the IT index was the top gainer followed by FMCG. All other indices were marginally down in early trades.

IT stocks rose on the back of better-than-expected earnings by select US companies indicating that the world's largest economy is on the path of revival. Software majors earn most of their revenues from exports to the US. TCS was up 0.8% at Rs 1,488 and Infosys gained 0.3% to Rs 2,357 while Wipro was up 0.8% at Rs 355.

HDFC extended gains after it reported 17% year-on-year (yoy) jump in net profit at Rs 1,555 crore for the quarter ended March 31, 2013. India’s largest mortgage lender had profit of Rs 1,326 crore in a year ago quarter. Further, the directors have recommended a dividend of Rs 12.50 per share on face value of Rs 2 per share.

ICICI Bank, Sun Pharma, Reliance Ind and L&T were some of the Sensex losers in early trades.

Among other shares, SKS Microfinance is trading higher by 5% at Rs 134 after reporting a net profit of Rs 2.7 crore for the quarter ended March 31, 2013 (Q4) against loss of Rs 330 crore in year ago quarter. Total income rose nearly 44% to Rs 95 crore from Rs 66 crore year-on-year.

Aptech has rallied 7% to Rs 50.65 after information technology (IT) training services provider announced that its board will consider buyback of the company’s equity shares.

The broader markets were also trading flat with the BSE Mid-cap marginally down and the Small-cap index up 0.2%.

Market breadth was positive with 553 gainers and 460 losers on the BSE.