Sensex trades flat, Nifty holds above 9,650; Tata Motors top gainer

The S&P BSE Midcap and the S&P BSE Smallcap indices added 0.2% and 0.3%, respectively

The benchmark indices was trading flat with positive bias on Tuesday tracking mixed trend in Asian markets after the S&P 500 and the Dow Jones on Wall Street hit record highs overnight thanks to a rebound in technology shares. 

At 12:10 am, the S&P BSE Sensex was trading at 31,336, up 24 points, while the broader Nifty50 was ruling at 9,665, up 8 points. 

In the broader market, the S&P BSE Midcap and the S&P BSE Smallcap indices outperformed to add 0.5% each. 

Meanwhile, on Monday, foreign institutional investors were net sellers to the tune of Rs 250 crore, while domestic investors bought equities worth Rs 529 crore, provisional data available with BSE showed. 

"We are not so surprised with Monday's move as we had anticipated probable attempt towards the 9,700 mark. In today's session, we expect this optimism to continue and Nifty to head towards the mentioned resistance zone of 9,700-9,720.  The support zone now would be seen at 9,620-9,580 levels," said Angel Broking in a technical note. 

Sectors and stocks

The Nifty Bank was trading flat with negative bias after hitting record high of 23,742 in the previous session. Axis Bank, Kotak Bank and Indusind Bank shed the most on index. 

The move came after Punjab joined Maharashtra and Uttar Pradesh in announcing sops for farmers after Chief Minister Amarinder Singh on Monday announced a total waiver of the entire crop loan amount for small and marginal farmers in the state.

Tata Motors advanced over 2% to Rs 465 and was the top gainer on Sensex after the company clarified that it had no plans to list its luxury British car brand Jaguar Land Rover. The statement came following news reports that the automaker was considering an initial public offering of the unit. Tata Motors DVR also rose over 1% to Rs 288.

SpiceJet added nearly 3% to Rs 128 said after the low-cost carrier said it has signed an MoU with Boeing for 40 737 MAX airplanes. 

Worth waiting until year-end, Fed's Evans on rate hike

Chicago Federal Reserve President Charles Evans said on Monday it may be worthwhile for the US central bank to wait until year-end to decide whether to raise rates again. 

Given the recent softening in inflation data, "I don't see why we would not be served to allow more time to wait," Evans told reporters after his speech before the Money Marketeers of New York University.  

MSCI's decision on mainland Chinese stocks

A big focus for Asia is whether index provider MSCI will later in the day open up its Emerging Markets Index to Chinese mainland shares which have restricted access for foreign investors.

Many investors expect the so-called A shares that make up the majority of China's stock market are likely to be included after being rejected on three previous occasions.

This be a big boost to the world's second-largest stock market, which has until now drawn limited foreign investor interest because of high volatility and frequent trading halts.

Global markets

Japan's Nikkei rose more than 1% to hit a near two-year high on Tuesday following a rebound in U.S. hi-tech shares as investors bet on solid growth in the economy and corporate profits globally.

MSCI's broadest index of Asia-Pacific shares outside Japan was little changed in early trade.

Wall Street's S&P 500 and the Dow industrial average hit record highs as technology shares bounced back after some sudden falls earlier this month.

The Dow Jones Industrial Average rose 144.71 points, or 0.68% to end at 21,528.99, the S&P 500 gained 20.31 points, or 0.83% to 2,453.46 and the Nasdaq Composite rose 87.26 points, or 1.42% to 6,239.01.

(With inputs from Reuters)