Markets pare early gains

Markets opened on a positive note this morning, mirroring cues from Asian peers, but slipped soon after. The Sensex opened at 17,990 - up 11 points. However, it lost some weight and was up 13points at 17,891. Nifty was up six points at 5,379.

Asian markets gained in morning trades after G7 nations agreed to intervene to control soaring currency and calm investor sentiments in Japan following the earthquake. Japan's Nikkei, after last weeks high volumes, surged 2.7% to 9,207. Hang Seng jumped 1.3% to 22,589. Taiwan Weighted added 1% to 8,483.

Markets in US jumped on Friday as investors breathed a sigh of relief following a aceasefire in Libya. POlitical revolts in the region had pushed crude oil prices to multi-month highs. Oil fell as the ceasefire was announced to protect lives of civilians and to comply with the UN resolution. The Dow jumped 0.7% to 11,859. Nasdaq gained eight points to 2,643.

Back home, the Sensex ended below the 18k mark at 17,878, weaker by 295 points (in the week) or 1.6% and the Nifty ended at 5374, lower by 72 points or 1.5%. Global worries, inflation and a 25 bps hike in key rates by the RBI took the markets lower.

"Technically the market is weak and the next logical target on the way down side is around 5200 in the days to come...technically the market has a stiff resistance around 5500 zones on the way up," said technical analyst, Prakash Gaba.

Most of the sectoral indices were in the green. However, the oil & gas and IT space traded on a soft note.

Oil marketing companies slipped after gaining last week. BPCL dropped 1% to Rs 555, followed by HPCL and IOC. Market heavyweight, Reliance, was down 0.9% at Rs 985.

Among IT stocks, Infosys shed 0.2% to Rs 2,934. TCS was marginally in red. Hindalco, in the metal space, and Maruti in the auto sector slipped in early trades.

Ranbaxy dropped 3% to Rs 454 after Mylan sued the USFDA and tried to block the drug maker's Lipitor copy.

Meanwhile, HDFC jumped 1.3% to Rs 629. Bharti Airtel gained 1% to RS 321, followed by Jindal Steel, Hero Honda and ITC. Sterlite and Tata Steel also gained in the metal stocks. Tata Motors, Wipro, Larsen & Toubro, SBI and Hindustan Unilever were marginally in green.