Sensex recoups after a flat start on short-covering

India’s benchmark index, Sensex edged higher amid volatile trading session this Monday on back of short-covering witnessed in metal and mining stocks on hopes of growth recovery in China after country’s services sector growth showed some resilience.

At 11:05AM, the 30-share Sensex gained 135 points at 19,299 and the 50-share Nifty rose 37 points at 5,715  levels.

Asian shares traded mixed with Chinese stocks inching higher after country’s  services sector defied the country's economic cool down to expand modestly in July.   

The HSBC/Markit Purchasing Managers' Index (PMI) for the services industry stood at 51.3 in July, unchanged from June and just a whisker above a 20-month low of 51.1 struck in April.  

Japan’s Nikkei declined 1.2 % to 14,285, Singapore Straits Times fell 0.5% to 3,235, China’s Shanghai Composite index was up 0.2%  at 2,033 while Hong Kong’s Hang Seng was up 0.2% to 22,239 today.Among the key sectoral indices , FMCG, IT, technology and oil & gas indices gained while capital goods and power sectors  declined on the BSE.

The gainers included counters such as Coal India rising 4%, Jindal Steel gained 3.2%, NTPC  rose 2%, Sterlite Industries added 3.1% respectively on the BSE.

The laggards were BHEL declining 13%, Tata Power shed 1.4%, Bajaj Auto dropped 0.9 % while GAIL was down 0.8% on the BSE.

The key notable movers included counters such as PI Industries that has rallied 11% to Rs 135, in otherwise subdued market, after reporting more than doubled net profit at Rs 48.54 crore for the quarter ended June 30, 2013 (Q1), on back of strong growth in sales. The agrochemicals company had profit of Rs 23.45 crore in year ago quarter.

Shares in Financial Technologies (India) Ltd rose as much as 14.1% on Monday in volatile trading after slumping 73% over the previous two sessions.

The broader markets traded flat with mid-caps falling 0.04 per cent and small-caps gaining 0.1 per cent on the BSE.

The market breadth was negative. Out of 1,712  stocks traded, 862 stocks advanced while 775 stocks declined on the BSE.