Broader markets outperform; Small-cap index up 1.5%

The BSE Mid-cap index was up over 1% and the Small-cap index was up 1.5%

Benchmark share indices continued to trade flat in noon deals on Monday as investors shunned large caps and looked for bargains in the mid-cap and small-cap shares after the recent correction.

At 1:15PM, the 30-share Sensex was down 0.03% at 26,617 and the 50-share Nifty was down 0.1% at 7,963.  

In the broader market, the BSE Mid-cap index was up 1.2% and Small-cap index was up 1.7%.

The Indian rupee was trading lower at Rs 61.44 to the US dollar compared to Friday's close of Rs 61.14 because of month-end dollar demand from importers. Further, the trend in the Indian currency will track the RBI monetary policy review tomorrow.

Asian markets remained volatile following political unrest in Hong Kong, the worst since China took control 20 years ago. Japanese shares firmed up 0.5% led by exporters' shares following the weakness in the yen. Shanghai Composite was up 0.5% while shares in Hong Kong witnessed selling pressure with the Hang Seng down nearly 2%. Meanwhile, Singapore's Straits Times was trading flat with negative bias.

European markers were trading lower 0.1-0.2% each ahead of key economic data for release later today.

Healthcare, IT and Consumer Durables indices were the top gainers up 1.3-2.1% each. Metal, FMCG and Bankex were the top losers.

TCS was up 2.6% after the company was awarded as the "Best Technology Provider" by "Reactions," a leading insurance publication covering the global insurance and reinsurance market. Infosys was up 1.8%.

Pharma shares were also among the top Sensex gainers with Sun Pharma and Cipla up 1-3% each.

Index heavyweight Reliance Industries was up 0.8%.

FMCG majors were down after recent market research report suggests that rural consumption declined 7% in May-July against a fall of 1% in the year-ago period. In value terms, consumption rose just 1%, compared with 2% last year. Further, downgrade by Morgan Stanley to 'underweight' from 'equalweight' weighed on HUL which was down 1.3%. ITC was also trading 1.3% lower.

Financial stocks were trading lower as investors booked profits ahead of the RBI monetary policy review tomorrow. HDFC, HDFC Bank, ICICI Bank and Axis Bank were down 0.5% each.

Among other shares, HOV Services is locked in upper circuit of 20% at Rs 121 on back of heavy volumes after its business process outsourcing (BPO) firm SourceHOV said it has entered into an agreement with BancTec Group LLC.

Market breadth was positive with 1,858 gainers and 826 losers on the BSE.