Sensex, Nifty Turn Flat; Financials Attract Buying, IT Stocks Weak

Domestic stock markets have turned absolutely flat in mid-morning session asbuying interest in financial stocks is being negated by selling in IT space.

Sensex, Nifty Turn Flat; Financials Attract Buying, IT Stocks Weak

IT major Tata Consultancy Services will kick off the earnings season on Thursday.

Domestic stock markets have surrendered their early gains and turned absolutely flat in mid-morning session, amid choppiness, as buying interest in financial stocks is being negated by selling pressure in the information technology space ahead of the earnings season scheduled to start on Thursday. The S&P BSE Sensex index had climbed up as much as 0.42 points - or 153.91 points - to 36,828.43 in the first few minutes of trade, after starting the day up 0.17 per cent at 36,738.38. The broader NSE Nifty 50 benchmark rose to as high as 10,847.85, having opened stronger at 10,818.65 compared to its previous close of 10,799.65. 

The markets were, however, quick to give up all their gains. At 11:05 am, the BSE Sensex was trading at 36,650.01, lower by 23 points and the NSE Nifty was at 10,795, down 5 points. Financial stocks are witnessing buying interest, while information technology stocks are weak ahead of the earnings season. IT major Tata Consultancy Services (TCS) will kick off the earnings season on Thursday, by reporting its financial results for the April-June period.

The BSE Sensex has been confined to a narrow range of 221 points between an intra-day high of 36,828.43 and a low of 36,607.83 and the Nifty is also trading in a band of 63 points between a high of 10,847.85 and a low of 10,784.60 this morning.

Analysts are also awaiting key macroeconomic data, with the official data on industrial production and retail inflation due to be released this week.

Financial stocks were in the limelight; SBI, HDFC Bank, Bank of Baroda and Canara Bank gained up to 3 per cent each, on the NSE. And Yes Bank jumped more than 2 per cent to Rs 26.40 a day after the board of the private lender approved a plan to raise funds through a follow-on public offer.

Information technology stocks were, however, nervous ahead of the TCS numbers. TCS was trading lower by 0.6 per cent at Rs 2,254. Infosys, HCL Tech and Tech Mahindra also lost up to 2 per cent each, on the NSE.

The NSE market breadth was positive. Out of 2,125 stocks traded on the NSE, there were 949 advancing stocks as against 776 declines.