Sensex, Nifty Flat; Midcap, Smallcap Stocks Outshine

BSE Sensex and Nifty struggled today as investors remained cautious ahead of inflation and factory output data to be released later in the day.

Mixed global markets and a volatility in the rupee also weighed on sentiment.

However, midcap and smallcap stocks continued to outperform the frontline stocks. The BSE midcap and smallcap indices were up nearly 0.2 per cent.

Market analyst Rajat K Bose said though fundamentals of the economy are yet to catch up with the markets, positive sentiment is keeping the market supported. Higher participation from domestic investors is giving momentum to midcap and smallcap stocks, he adds.

Nifty faces resistance at the 8,126-8,143 zone and decisive close below 8,045 could lead to a deeper correction, he says.

Among major Nifty losers, Sun Pharma fell 2.7 per cent after its Taro unit recalled two lots of a key drug on September 2, citing failed content uniformity specifications, according to the US FDA.

Among gainers, Cipla, Bharti, Lupin and Asian Paints gained over 1 per cent.

Elsewhere, in other global markets, Asian shares traded mixed after a muted close on the Wall Street. Overnight, US stocks recovered from early losses, with the S&P 500 managing a slight gain.

The Sensex was up 16 points at 27,012 while Nifty was flat at 8,084. (With Agency Inputs)