Markets erase gains; BSE Midcap index down 0.5%

Markets have erased gains and have turned absolutely flat with Sensex and Nifty trading in a tight range.

By 9:47, the Sensex was higher by 9 points at 28,269 and the Nifty slipped 2 points at 8,567.

However, the broader markets are underperforming the benchmark indices- BSE Midcap and Smallcap indices have slipped between 0.4-0.5%.

Markets breadth has turned negative with 987 declined and 685 advances.

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Updated at 9:25

Markets have started the session on a positive note tracking higher global cues.

By 9:23, the Sensex was higher by 92 points at 28,352 and the Nifty gained 26 points at 8,597levels.

Markets will remain volatile as traders will unwind positions due to derivative expiry of March contract and fiscal-year profit booking, say experts.

Investment trends by overseas investors, movement of rupee against the dollar and crude oil would also influence trading.  The next major trigger for the Indian markets is Q4 results of India Inc. The Q4 results season starts during second week of April, 2015.

Meanwhile, foreign portfolio investors (FPIs) bought shares worth a net Rs 354.59 crore on Friday, 20 March 2015, as per provisional data. Domestic institutional investors (DIIs) sold shares worth a net Rs 219.20 crore on Friday, 20 March 2015, as per provisional data.

Further, the country's economy is likely to clock 8% growth in the next financial year and 8.3% in 2016-17, says a report.

"India is the only BRIC country, where growth will accelerate, to 8% in FY16 and 8.3% in FY17, based on revised data series," Fitch said in its report on Global Economic Outlook.

GLOBAL MARKETS

Major US stock indices ended higher on Friday after the dollar stabilised against major currencies while encouraging earnings from world's largest sports apparel maker Nike also boosted sentiment.

The Dow Jone industrial average ended up 169 points at 18,127.65, the S&P 500 gained 19 points to close at 2,108.10 and the Nasdaq ended up 34 points at 5,026.42.

Asian shares started the week on a strong note on Monday after a weaker US dollar helped fuel solid gains on Wall Street.

MSCI's broadest index of Asia-Pacific shares outside Japan was up about 1.3% in early trading, while Japan's Nikkei stock average opened up 0.2%.

SECTORS & STOCKS

BSE Healthcare, Capital Goods, Oil & Gas and Power indices are up nearly 1% each. However, BSE Metal index is down 0.4%.

The main gainers on the Sensex are Sun Pharma, Wipro, L&T, ICICI Bank, NTPC and Axis Bank.

Banking shares are trading higher. To help lenders deal with defaulting corporate borrowers, Sebi has relaxed norms for them to convert their debt into equity in distressed listed companies -- a move that may lead to a sharp surge in restructuring of bank loans.

The decision to tweak the pricing formula for conversion of debt into equity would also pave the way for bankers to have a larger say in activities of the distressed company by acquiring majority stake and taking over the management.

On the losing side, Jindal Steel is down almost 11% after the government rejected bids for the Gare Palma IV/2&3 and Tara coal blocks which were won by the company in the coal e-auction.

Among broader markets, BSE Midcap and Smallcap indices are up 0.3-0.4%. Markets breadth is positive with 700 shares advancing and 418 shares declining.