Markets pare gains in opening trades

Markets opened in the green this morning ahead of the Railway Budget. The Sensex opened up 142 points at 17,799. However, it pared gains and was flat at 17647 - up 15 points.

The Nifty was up 18 points at 5,281.

The US markets were mixed on Thursday. The Dow dropped 37 points to 12,069. Nasdaq was up 15 points at 2,738.

Asian markets were trading on a flat note. Hang Seng added 126 points at 22,726. Nikkei was up 23 points at 10,476. However, Shanghai Composite dropped 1% to 2,852.

The markets will be looking towards the big events today - the Railway Budget and the Economic Survey. After Thursday's freefall of around 3%, investors would be trading cautiously.

The Sensex had closed at 17,632 - down 546 points. Renewed concerns on the geopolitical front and the resultant spike in crude oil prices, besides a jump in inflation, rollover pressures in wake of expiry of the current derivatives series and caution ahead of the annual Budget on Monday took the markets down.

The stocks to watch out for would be the Railway stocks - Kernmex Micro, BEML, Titagarh Wagons, Kalindee Rail. Others stocks to be looked at include telecom, SBI, Axis Bank, Jubilant, NMDC.

BSE bankex, auto and FMCG indices were trading in the green. However, the IT index was down 1.5% at 6,056. Metals and oil sectors were also trading marginally lower.

Hindalco was the biggest loser among Sensex stocks. The stock was down 2.8% at Rs 199.

Hindustan Unilever, among FMCG stocks dipped 2.5% to Rs 273. Hero Honda and Maruti Suzuki, among auto stocks, dipped 2.3% each.

Tata Power, TCS, Sterlite, Infosys and Bajaja Auto were down 1-2% each.

MphasiS crashed 21% at Rs 493 as consolidated net profit dipped by 15.5% to Rs 226.67 crore in the quarter ended January 31, 2011, over the same period last year.

Meanwhile, Tata Motors gained 3% at Rs 1,088. ICICI Bank, ITC and Jaiprakash Associates were up 2% each.

ONGC, SBI, Mahindra & Mahindra and Bharti Airtel added 1% each in trades.