Markets flat in early noon deals

Maruti Suzuki top Sensex gainer, up 3%

Markets are trading on a flat note in early noon deals after investors booked profits in realty, capital goods, metal and banking stocks. However, auto stocks continue to outperform since early trades on hopes of robust earnings growth in the third quarter. The Sensex is down 4 points at 19,779 and the 50-share Nifty has also shed 4 points at 6,012 levels.

Meanwhile, the Asian markets have also slipped into the red. The Hang Seng is down 32 points at 23,299, Shanghai Composite has shed 3 points to 2,273, Nikkei is down 60 points at 10,628 and Taiwan Weighted is down 55 points at 7,750 levels.

Back home, According to Navneet Daga, Derivative Analyst with KR Choksey Securities, "structurally markets looks very promising for upside, but on short term its more or less likely to consolidate in range of 5,930 to 6,100 levels, before we get cues from earning session."

"Any downside fall towards 5,900 should be looked by traders to add positions on the long side," adds Navneet.

Realty, capital goods, metal, banking and power stocks are witnessing a mild profit booking. The BSE realty index is the top sectoral loser, down 0.5% at 2,186. Phoenix Mills, Godrej Properties, Unitech, DLF, HDIL, Parsvnath Developers and Indiabulls Real Estate are also among the losers.

While, buying is visible in the auto, healthcare, oil & gas, consumer durables and IT stocks. The BSE auto index is the top gainer, up up nearly 1% at 11,697 levels. Maruti Suzuki has advanced 3% to Rs 1,590, its highest level since December 15, 2009 on the NSE, on hopes of strong net profit growth in Q3 on account of the low base of last year and sharp revival in volumes post the Manesar strike.

The country’s largest car maker has reported 25.85% increase in its total sales at 301,453 units in Q3 (October-December, 2012) against total 239,528 vehicles sold in the same period last year.

Exide Industries, Mahindra & Mahindra, Hero MotoCorp, Tata Motors, Ashok Leyland and Bajaj Auto are also among the gainers.

Among the Sensex stocks, HDFC, Larsen & Toubro, Coal India, HDFC Bank, HUL, Tata Power, Jindal Steel and NTPC are trading lower by 0.5-1% each. While, Cipla, Sun Pharma, ONGC, Hindalco, Wipro, Dr Reddys Labs, Bharti Airtel and Infosys are among the gainers.

Among the individual stocks, Havells India is trading higher by 3% to Rs 653 after electric equipment and product maker said that it has entered into a revised trademark license agreement with one of its promoter companies - QRG Enterprises, which owns the brand name/ trade mark ‘Havells’.

Indraprastha Gas Ltd (IGL) is trading higher by 2.3% at Rs 258 on reports that the company has raised the CNG (compressed natural gas) price by 4% due to increase in overall input cost of natural gas.

The broader markets are also trading higher the BSE mid-cap index has advanced 0.6% or 45 points to 7,359 and the small-cap index has gained nearly 1% or 68 points at 7,683 levels.

The overall breadth is positive as 1585 stocks are advancing while 916 are declining.