Markets end tad lower ahead of Q3 earnings

Benchmark shares indices ended flat on Monday as investors turned cautious ahead of the third quarter earnings, which are expected to remain muted in a slowing economy and high interest rate regime.

The Sensex ended marginally lower at 15,815 levels slipping by 34 points.

It reached an intra-day high of 15,872 levels and touched an intra-day low of 15,678 levels.

The broader Nifty index closed flat at 4,743 levels down by 4 points. It touched the day's high of 4,759 levels and low of 4,695 levels.

On the global front, Asian markets ended on a mixed note. Hang Seng and Shanghai Composite surged between 1-2%. However, Kospi, Strait Times and Taiwan Index ended lower.

Signs of improvement in the German and US economies helped offset concerns over the prospects for euro zone debt auctions later this week, lifting the single currency and European shares on Monday.

Back home, shares of power companies were the top gainers and the BSE Power index surged by 1.6% at 1,871.

Tata Power rose by 1.7% at Rs 93.50 on reports that the company has commissioned a unit of its 4,000 mega watts power station at Mundra in Gujarat.

Other power stocks like, GVK Power & Infrastructure, GMR Infra, Reliance Power, JSW Energy, Reliance Infrastructure, Adani Power and NHPC spurted between 1-3%.

In the Capital goods space, BHEL was the top Sensex gainer, up 3% at Rs 259.

L&T gained by nearly 1%.

BSE Capital Goods index gained 1% at 8,683 levels.

Consumer Durable stocks like Blue Star, C Mahindra Exports, Rajesh Exports, Titan and VIP Inds zoomed between 1-3%.

Technology majors gave up most of their early gains on profit booking.

Infosys was down 0.05% ahead of its Oct-Dec results on Thursday and TCS slipped 0.1%.

From the banking and financial space, HDFC Bank surged by nearly 1%. However, SBI was down 2% on concerns of rising non-performing assets.

HDFC was down 1% ahead of its Oct-Dec results on worries that growth in home loans would be impacted following poor home loan demand on the back of rising interest rates.

However, BSE Auto and Oil & Gas indices ended between 0.5-1%.  Index heavyweight RIL declined 0.9% while ONGC ended marginally lower.

Tata Motors and Bajaj Auto slipped between 1-2%.

However, Maruti Suzuki gained by almost 2%.

Telecom major Bharti Airtel plunged by nearly 3% as sources reports that the telecom department plans to impose penalties totaling Rs 1,594 crore on five mobile phone companies for allegedly understating revenues and hence paying lower revenue share during 2006-07 and 2007-08.

Among Metal pack, Jindal Steel and Power surged by nearly 3%. However, Coal India fell by 2% on reports that the Calcutta high court has asked the company not to implement the new pricing regime in West Bengal till 16 January 2012

after public interest litigation was filed.

The next hearing will be on 16 January 2011.

The broader markets outperformed the benchmark indices in today's trade. BSE Midcap and Smallcap indices gained by nearly 1% each.

PSU shares shot up ahead of likely Cabinet meeting for PSU share buybacks this week. HMT, RCF, National Fertisliers and Hindustan Copper have gained between 3-14%.

MMTC jumped by 8%. It's market capitalisation was near to Rs 1 lakh crore mark.

Pratibha industries gained nearly 5% in trade today after the company informed that it has bagged orders worth Rs 772 crore.

Subex is going to issue preferential shares at Rs 98 per share.

The company is going to raise up to $135 million for fund raising, reports sources.

The stock surged 19%.

GMR Infra has gained 8% to Rs 25 on reports that the Maldives authorities have allowed Male International Airport Ltd operator GMR Infrastructure to collect airport development and insurance fees from passengers, nearly a month after a local court barred the Bangalore-based company from doing so.

Railway related stocks like Titagarh Wagon, Texmaco, Kalindee Rail Nirman, Kernex Microsystems and Stone India made smart gains.

SKS Microfinance jumped 4% on reports that the Reserve Bank of India has said that foreign institutional investors can purchase upto 74% of its paid up capital of SKS Microfinance under the Portfolio Investment Scheme.

Radha Madhav Corporation surged following its board meeting on Friday, which has approved allotment of equity shares to promoters on preferential basis at a premium to the current stock price.

Sugar shares like Sakthi Sugars, Rana Suga, Shree Renuka Sugars, Triveni Engineering & Industries, Bajaj Hindusthan, Simbhaoli Sugars and Balrampur Chini Mills gained between 1-14%.

The market breadth on the BSE ended positive with 1,636 shares advancing and 1,082 shares declining.