The benchmark indices have surrendered most of their early gains and turned flat on Tuesday afternoon, amid alternate bouts of buying and selling. The BSE Sensex has gyrated in a range of more than 500 points between an intra-day high of 58,779 and a low of 58,232 and is currently trading at 58,570.10, up 80 points or 0.1 per cent and the Nifty is at 17,430.10, up 34 points or 0.20 per cent.
The BSE Midcap index is also moving in tandem with largecap counterparts, registering gains of 0.20 per cent. The BSE Smallcap index has, however, shed 0.6 per cent.
Gains in IndusInd Bank, Bajaj Finance and Bajaj Finserv are being negated by losses in Maruti Suzuki, Bajaj Auto, Axis Bank and HDFC Bank
Asian stock markets are trading mixed and the European markets have opened in the green, in a sign of stability a day after the markets were roiled by fears that China's property giant Evergrande may default on its massive debt.
On the stock-specific front, IndusInd Bank, Bajaj Finance, Bajaj Finserv and Tata Steel have gained 1-4 per cent each on the BSE. Information technology stocks are also gaining strong, with Tech Mahindra, HCL Tech and Infosys gaining around a per cent each. Tata Steel had plunged 9 per cent in the previous session on fears of a slowdown in China and its impact on the metal sector and today's gains in the metal bellweather stock seems to be a case of value buying at lower levels.
On the other hand, select auto and private banks are weak. In the ato sector, Maruti Suzuki and Bajaj Auto have shed 2 per cent and 1 per cent each on the BSE. And in the private banking space, Axis Bank, HDFC Bank and ICICI Bank have shed around a per cent each.
The BSE market breadth is weak. Out of 3,291 stocks traded on the BSE, there are 1210 advancing stocks as against 1920 declines.