Markets turn flat after higher opening

BSE Realty, Oil & Gas and Power indices have gained by 1% each

Markets have turned flat after making a higher opening tracking positive global cues. By 9:30, the Sensex was up by 12 points at 18,641 and Nifty gained by 10 points at 5,619 levels.  

US share indices ended higher on Tuesday on encouraging economic data.  The Dow Jones gained 0.7 per cent, S&P 500 rose 1 per cent while Nasdaq ended 0.8 per cent higher.

Most Asian shares turned around a four-day losing streak and rose on Wednesday as investors took comfort from US data underscoring an American recovery and assurances from China's central bank that it will offer funds to banks if needed.

But fears of a credit crunch and slower loan growth continued to fuel selling of Chinese banking shares in Shanghai. Although China's short-term borrowing rates eased for a fourth day, they remained at elevated levels.

MSCI's broadest index of Asia-Pacific shares outside Japan climbed 1.4% after plumbing an 11-month low on Tuesday, with Australia, Hong Kong and Southeast Asian bourses all higher.

Gold hit a near-three year low on Wednesday, falling for a seventh session out of eight, as strong US economic data boosted stocks and supported the Federal Reserve's plan to scale back its bond purchases in the next few months.   

Back home, BSE Realty, Oil & Gas and Power indices have gained by 1% each. However, BSE Auto index has declined by nearly 1%.

The main gainers on the Sensex at this hour include NTPC, Sterlite, RIL, Tata Power, ICICI Bank, Tata Steel, Sun Pharma and ONGC.

On the losing side, Bharti Airtel, Bajaj Auto and Tata Motors have declined by nearly 2% each.

The broader markets are outperforming the benchmark with marginal gains. BSE Midcap and Smallcap indices are up 0.2-0.4%.

The market breadth in BSE remains positive with 468 shares advancing and 316 shares declining.