Markets remain flat ahead of F&O expiry, Midcaps outperform

Benchmark indices are trading in a narrow range amid volatile session with Sensex and Nifty swinging between negative and positive zone.

Market remain cautious as traders will roll over positions in the futures & options (F&O) segment from the near month to November series. The near month October derivatives contract will expire today.

The data for two important indicators -- fiscal deficit and core sector -- for the month of September are likely to be released today.

At 10:20 AM the Sensex was down 4 points at 21,030 and the Nifty was down 6 points at 6,246.

According to Mohit Gaba, Independent technical analyst & trader, “The bias is still bullish, as long as we trade above 6200 one should hold onto long positions.”

On the global front, US stocks fell on Wednesday, with the S&P 500 snapping a four-day streak of gains after the Federal Reserve said it had a weaker growth outlook for the economy, even as it held steady with its stimulus program for the time being.

Trading was volatile following the release of the statement, with the major US stock indexes cutting losses to turn flat and dropping to session lows. Almost 70% of stocks on both the New York Stock Exchange and Nasdaq declined, while all 10 S&P 500 sector indexes fell.

Asian markets suffered a glancing blow on Thursday after the US Federal Reserve's latest policy outlook was deemed less dovish than some had wagered on, lifting both bond yields and the dollar.

Back home, the rupee weakened in early trade today due to dollar demand from importers on the last day of the month.

At 10:10 AM, the rupee was trading at Rs 61.34 compared with previous close of Rs 61.24 per dollar.

Bank of Baroda, Bank of India, Dr Reddy's Labs, I D F C, Sesa Sterlite, Titan Inds will unveil their second quarter earnings.

On the sectoral front, BSE Consumer Durables and Capital Goods indices have surged between 1-2%. However, BSE Bankex, Healthcare, PSU and FMCG indices have declined between 0.2-0.4%.

The main gainers on the Sensex at this hour include Bharti Airtel, Wipro, Tata Motors, Tata Steel and L&T have spurted between 1-3%.

On the losing side, ONGC, M&M, HUL, Dr Reddy’s Lab and GAIL have declined between 1-2%.

DLF is trading lower by 2% at Rs 145 in early morning deals on NSE after reporting 28% year on year (yoy) decline in consolidated net profit at Rs 100 crore for the second quarter ended September 2013 (Q2), due to poor sales, high interest cost and higher effective tax rate during the quarter. The realty major had posted profit of Rs 139 crore in a year ago quarter.

Among other shares, Excel Crop Care is locked in upper circuit of 5% at Rs 308 on BSE, after the Competition Appellate Tribunal has reduced the penalty by more than 90%, imposed by the Competition Commission of India. The Tribunal has reduced the amount of the penalty to Rs 2.92 crore from Rs 63.90 crore.

Shares of Gujarat Mineral Development Corporation (GMDC) has tanked nearly 7% to Rs 97 on BSE, after reporting a sharp 73% year on year decline in standalone net profit at Rs 46 crore for the quarter ended September 30 (Q2) due to drop in net sales. The company had profit of Rs 169 crore in a year ago quarter.

The broader markets continue to outperform the benchmark indices. BSE Midcap and Smallcap indices have gained between 0.5-1%.

The market breadth in BSE remains firm with 808 shares advancing and 588 shares declining.