Sensex ends flat, Nifty above 8,800 ahead of retail inflation data

The benchmark indices on Monday scuttled between gains and losses to settle flat as investors awaited January consumer price index-based inflation data due later in the evening.  

However, investor sentiment was upbeat as Asian shares ticked up on renewed optimism over US President Trump's tax reform plans and his change of tack to agree to honour the "one China" policy.

The S&P BSE Sensex ended at  28,351, up 17 points, while the broader Nifty50 quoted 8,805, up 11 points at close.

In the broader market, the BSE Mid-Cap and the BSE Smallcap indices underperformed the frontline indices and shed 0.4% and 0.5%, respectively. 

The market breadth indicating the overall health of the market remained weak. On BSE, 1,789 shares fell and 1,092 shares rose. A total of 170 shares were unchanged.

"Market showed a range-bound movement with  positive bias as investors are awaiting CPI inflation data today. Due to a slowdown in demand on account of demonetisation, the CPI inflation is likely to moderate further and it will not create much impact on RBI to change their current neutral stance. Focus will be on earnings and a revival in demand with realisation growth," said Vinod Nair, Head of Research, Geojit Financial Services.

CPI inflation

The consumer price index-based inflation is likely to come down in January to the lowest in the new series due to subdued demand post-demonetisation and base effect before spiking up again in the next two months. 

According to the poll of 26 economists by Reuters, the inflation rate for January slowed to 3.22% in January. 

Sectors and stocks

Sectorally, BSE Information Technology (up 0.9%) gained the most. Infosys, Wipro and TCS added up to 1%.  

Public sector undertaking (PSU) bank were trading under pressure with the Nifty PSU Bank index falling 3% led by decline in Bank of Baroda (BOB), Bank of India (BOI) and Oriental Bank of Commerce.

While, shares of private sector banks ended firm with IndusInd Bank and YES Bank hitting their respective record highs on the National Stock Exchange (NSE).

Nifty Private Bank index was up 0.73% against 3% decline in the Nifty PSU Bank index.

SRF dipped 10% to Rs 1,580 after the company reported flat consolidated EBITDA (earnings before interest, tax, depreciation and amortization) profit at Rs 238 crore for the quarter ended December 2016 (Q3) over the previous year quarter. EBITDA margin declined 80 basis points to 19.7% in Q3FY17 from 20.5% in Q3FY16.

Balrampur Chini Mills hit a 52-week high of Rs 162, up 5% in intraday trade after the company reported net profit of Rs 175 crore for the quarter ended December 2016 (Q3). The sugar manufacture had reported profit of Rs 87 crore in the same period last year. The scrip settled the day 1.2% higher. 

Global markets

European markets were trading higher. The pan-European Stoxx 600 was up 0.25%, while Dax and CAC added 0.4% each. Asian stocks rallied to 1-1/2-year highs. China's Shanghai Composite rose 0.6%, Japan's Nikkei 0.4%, while Hong Kong's Hang Seng index jumped 0.6%.