Markets open flat on of US 'fiscal-cliff' stalemate

India's current account deficit data eyed

Indian shares opened on a flat note this Monday as investors waited for the crucial current account data scheduled later today amid looming concerns over US 'fiscal-cliff'  that may lead to  automatic tax hikes and spending cuts by January 1st pushing world's biggest economy into recession.

The Bombay Stock Exchange's Sensex index opened 22.25 points down at 19,422.59  while the National Stock Exchange's Nifty-50 index declined 7.15 points to open at  5,901.20.

India's current account data for July-September due today is expected to show a record high deficit, leading to a negative balance of payments.

Global risk appetite was weak as US lawmakers battled over finding resolution for 'fiscal-cliff'.

US stocks fell for a fifth straight day on Friday, dropping 1%and marking the S&P 500's longest losing streak in three months as the federal government edged closer to the "fiscal cliff" with no solution in sight.   

Dow Jones Industrial Average was down 0.14% or 18.28 points at 13096.31. Nasdaq Composite was down 0.14% or 4.25 points at 2985.91. Standard & Poor's 500 was down 0.12% or 1.73 points at 1418.1.

In Asia, the markets were trading mostly in the red with Shanghai Composite being the only exception which added 1% iafter robust PMI data. Hong Kong's Hang Seng was tad up 0.04% to 22,676 , Singapore's Straits Times were down 1% to 3,165. Japanese markets are shut today.

MSCI Asia-Pacific index outside Japan rose 0.11% to 899.92.

On the domestic front, barring IT and FMCG sectors, all others were trading positive. Oil & Gas, power, capital goods, autos, PSU led gains on BSE.

Among key Sensex stocks, Larsen & Toubro declined over 1%, Sterlite and Tata Steel fell nearly 0.5% while among banks, SBI, ICICI Bank and HDFC Bank dropped 0.1-0.3% on BSE

The gainers include Wipro rose over 1%, Reliance Industries  gained 0.8%, Tata Motors was up 0.7%, Maruti Suzuki rose 0.6% on BSE.

The broader markets outperformed benchmark indices with mid-caps and small-caps gaining 0.2-0.3% on BSE.

The market breadth is strong as  702 stocks gained compared to 292 declines on BSE.