Markets trade sideways

IT, Auto gains

Markets continue to trade with marginal gains amidst volatility with the Sensex up 31 points at 18,793 and the Nifty was flat at 5708.

Meanwhile, the broader markets remained strong with the midcap index up 0.6% and the smallcap index advanced 0.9% outperforming the BSE benchmark index which was flat.

The rupee rises to 52.78/79 from Friday's close of 52.85/86, after earlier hitting a session high at 53.00. Private bank dealer sees rupee buying by custodian banks, which he attributes to foreign investor purchases of bonds.

On the macro front, India's annual exports fell 9.7% to $22.3 billion in August, while imports fell about 5.1% to $38 billion, leaving a trade deficit of $15.6 billion, government data showed on Monday. India's overseas sales have fallen from year-ago levels in five of the past six months, with trade officials blaming weak demand in major export destinations like the United States and Europe.

In the Asian markets, Japan's Nikkei share average fell 0.8%, to its lowest close in three weeks as weak economic data and cuts in profit outlooks from major companies underscored concerns over slowing global growth. Meanwhile, Shanghai Composite advanced 1.4% along with Hang Seng and Kospi Composite gaining 0.3% each.

Among the sectoral indices, IT index remained steady with over 1% gain. The other gainers included Auto, Health Care and FMCG adding 0.2-0.4%. Meanwhile, Realty, Metal and Bankex indices slipped 0.5-0.8%.

Among the Sensex stocks, Infosys and Tata Motors advanced 2% followed by BHEL, SBI, Maruti Suzuki, Jindal Steel and Gail India up 1% each.

On the other hand, Tata Steel,HDFC Bank, Bajaj Auto, Tata Power and ONGC lost 1% each. The other notable losers were Sterlite, Coal India, ICICI Bank, Hindalco and L&T down 0.5% each.

In individual stocks, Bilcare rallied over 14% to Rs 234 after the company said its promoters have released majority of pledge shares in last week.

Shares of Kingfisher Airlines tumbled by about 5% after the company said it was cancelling several flights today due to employee unrest.

The market breadth was positive as 1565 stocks advanced while 1059 stocks declined on the BSE.