Markets trade flat with positive bias; Nifty holds on to 9,600

The benchmark indices continued to trade flat with positive bias after Asian markets inched back into the black as investors wagered the latest flare-up of tensions on the Korean peninsula would fade away like so many others.

At 2:28 pm, the S&P BSE Sensex was trading at 31,223, up 13 points, while the broader Nifty50 was ruling at 9,627, up 14 points. 

In the broader market, the S&P BSE Midcap and the S&P BSE Smallcap indices outperformed to gain nearly 1% each. 

The breadth, indicating strength of the market was strong. On BSE, 1,509 shares rose and 878 shares fell. A total of 122 shares were unchanged.

Tata Motors rose over 1% after the company said that it has slashed prices of passenger vehicles post GST, passing benefits of GST to its customers. 

Mahindra & Mahindra (M&M) rose over 2% after the company announced revised prices of its vehicles pursuant to the implementation of Goods & Services Tax (GST), with immediate effect.

ABC Bearings was locked in upper circuit for the second straight day, up 20% at Rs 286 on BSE, after the company said that the board has approved the merger with Timken India.

The stock, trading at its record high level, has zoomed 62% in the past three trading sessions from Rs 177 on June 30, 2017.

Shares of Texmaco Rail & Engineering advanced as much as 12% after Adventz Group on Tuesday said it has signed a $2 billion-plus agreement with Israel’s Lesico group to collaborate in light rail transit (LRT) projects in Tel Aviv and Jerusalem. 

On macroeconomic data front, buoyed by sustained growth in new work, the services sector continued to boom ahead in June, growing at an eight-month high pace, the widely tracked Nikkei India Services Purchasing Managers Index (PMI) showed.

The PMI for the dominating sector of the Indian economy stood at 53.1, higher than the 52.2 registered in May - back then a seven-month high.

Overseas, Asin markets turned positive. MSCI's broadest index of Asia-Pacific shares outside Japan regained 0.3%, half the losses suffered Tuesday when North Korea fired a missile into Japanese waters.

South Korea's main index rebounded by 0.36% and Japan's Nikkei ended up 0.25%.

E-Mini futures for the S&P 500 were barely changed.

(With inputs from Reuters)