Markets turn flat after positive start, Midcaps outperform

The broader markets are outperforming the benchmark indices- BSE Midcap & Smallcap indices up 0.3-0.4%

Markets have started the October series on a flat note with positive bias. By 9:35, the Sensex was higher by 20 points at 19,914 mark and the Nifty gained by 5 points at 5,887 levels.

The dollar held firm in early Asian trade after US jobless claims figures pointed to an improving labour market, reviving expectations of a reduction in US monetary stimulus.

Lack of progress in budget and debt negotiations in Washington could also undermine investor risk appetite, capping gains in global shares.

Both Japanese shares and MSCI's broadest index of Asia-Pacific shares outside Japan were little changed in early trade.

The rupee was stronger on Friday on general risk-on sentiment and hopes of a positive stock opening.

The rupee was at 61.98/00 to the dollar versus Thursday's close of  62.07/08.

BSE Consumer Durables, Oil & Gas, Healthcare and IT indices have gained by 1% each. However, BSE Bankex has declined marginally.

The main gainers on the Sensex at this hour include Sun Pharma, Wipto, Tata Steel, Maruti Suzuki and L&T.

On the losing side, BHEL, ICICI Bank, JSPL, Dr Reddy’s Lab and Bharti Airtel have declined between 1-2%.

Dr Reddy’s Laboratories is trading lower in early morning deals on NSE after the pharmaceutical company loses the Lunesta patent case in U.S.

The broader markets are outperforming the benchmark indices- BSE Midcap & Smallcap indices up 0.3-0.4%.

The market breadth in BSE remains positive with 603 shares advancing and 263 shares declining.