Sensex swings between gains and losses, Nifty tests 8,800

In the broader market, the Mid-Cap and the Smallcap indices underperformed the frontline indices

The benchmark indices on Monday extended losses with losses in companies such as Bank of Baroda and telecom company Idea Cellular outweighing gains in IT stocks.

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.

At 02:07 pm, the S&P BSE Sensex was trading at 28,350, up 16 points, while the broader Nifty50 was ruling at 8,802, up 9 points. 

In the broader market, the BSE Mid-Cap and the BSE Smallcap indices underperformed the frontline indices and shed 0.8% each.

The market breadth indicating the overall health of the market was weak. On BSE, 1,814 shares fell and 927 shares rose. A total of 149 shares were unchanged.

Sectorally, BSE Consumer Durables (down 1.4%) fell the most, led by losses in Crompton (down 4.3%), Symphoney (down 3.5%) and Whirlpool (down 1.5%). 

BSE Realty (down 1.3%) and BSE Industrials (0.8%) were the other sectoral losers.  

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

SRF dipped 8% to Rs 1,615 on the BSE in intra-day trade 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.

Among gainers, IT stocks were trading higher. Infosys was the top Sensex gainer and rallied 2% to Rs 982.

Balrampur Chini Mills hit a 52-week high of Rs 162, up 5% on the BSE in early morning 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.

Asian stocks rallied to 1-1/2-year highs, helped by renewed hopes over US President Donald Trump's tax reform plans, generally upbeat global economic data and a rebound in some commodities.