Nifty struggles at 5,800 on global growth woes

China's PMI expanded at 50.5 compared to 51.6 in March fuelling growth concerns in Asia

Markets edged lower with 50-share Nifty facing hurdle to keep-above 5,800 resistance levels in late-morning trades this Tuesday.

Risk appetite was frail on brewing concerns over Chinese growth after a preliminary report showed manufacturing in world’s second-biggest economy expanded less than economists estimate.

Meanwhile, domestic investor sentiments were also jittery after a report from the PMEAC chairman C Rangarajan said that the current account deficit for fiscal year 2014 will be 4.7% of GDP while the fiscal 2013 CAD is being seen at 5.1%..

At 11:30AM, the Bombay Stock Exchange's 30-share index Sensex fell 98 points at 19,070.78 while the National Stock Exchange's 50-share Nifty declined 35.55 points at 5,798.85.

Trading on the domestic bourses was also lacklustre ahead of holiday tomorrow and Futures and Options expiry this Thursday. The upcoming monetary policy by the central bank on May 3 also kept investors on the side-lines before taking any big move.

Globally, China’s Shanghai Composite Index dropped 2.1 percent, heading for its biggest decline since March 28 after a preliminary reading of 50.5 compared to 51.6 for March for a Purchasing Managers’ Index, sparked growth concerns in the Asia.

The data was below the median estimate of 51.5 by Bloomberg.

Asian markets traded mixed with China’s Shanghai Composite Index down 2.14% to 2,194, Hong Kong’s Hang Seng dropped 1.15 % to 21,790, Singapore’s Straits Times fell 0.56% to 3,290 while Japan’s Nikkei was down 0.27% to 13,532.

Back home, the key sectoral indices such as banks, real-estate, capital goods, consumer durables, autos declined while IT , metal, oil & gas, healthcare sectors gained on the BSE.

The gainers on the Sensex included, Hero MotoCorp and Bajaj Auto rising 1.4% each, Reliance Industries was up 1%, Coal India gained 0.8% while TCS and Wipro gained 0.6% each on the BSE.

The laggards included counters such as Tata Motors and Maruti Suzuki shedding 2% and 1% respectively, SBI and ICICI Bank fell nearly 2% each, Larsen & Toubro declined 1.6% while BHEL fell 1.3% on the BSE.

The key notable movers are, Idea Cellular that has surged 5% to Rs 117 in otherwise weak market on hopes of maiden dividend from the telecom services provider since its listing in March 2007.

The board of directors of the company will meet on Thursday to consider a final dividend on equity shares of the company.

Elantas Beck India has tanked almost 18% or Rs 109 to Rs 514, also its 52-week low, after the stock turned ex-dividend today.

The board of directors of the company at its meeting held on February 27, 2013, had recommended a total dividend of Rs 92 per share, including a special dividend of Rs 87.50 per equity share, of Rs 10/- each, for the year 2012

The broader markets were mixed with mid-caps dropping 0.3% while small-caps added 0.3% on the BSE.

The market breadth was flat. Out of 1,952 stocks traded, 918 stocks declined compared to 931 advances on BSE.