Sensex trades flat, Nifty holds above 8,850 on tepid global cues

Back home the derivatives expiry due on Thursday kept the momentum subdued

The benchmark indices on Tuesday were trading flat tracking subdued trade in Asian markets as a holiday in the United States left investors with few triggers, while back home the derivatives expiry due on Thursday kept the momentum tepid.  

At 10:29 am, the S&P BSE Sensex was trading at 28,620, down 41 points, while the broader Nifty50 was ruling at 8,871, down 8 points. 

In the broader markets, the BSE Midcap and the BSE Smallcap indices outperformed the frontline indices to rise 0.2% and 0.3%, respectively. 

"Until Nifty holds above 8,820 zones trend may remain intact for buy on decline strategy while a decisive move above 8,888 zones may start the fresh leg of rally which may take the index towards 8,920, and then 9,000 zones. On the downside, if it drifts below 8,740, then a further decline towards 8,680 and 8,650 zones may be seen," said brokerage Anand Rathi in a research note. 

On Monday, foreign institutional investors sold equities worth Rs 433 crore, while domestic institutional investors bought equities worth Rs 828 crore, provisional data available with BSE showed. 

Sectors and stocks

BSE Telecom index (down 1.6%) was the leading sectoral loser, led by losses in Bharti Airtel, Infratel and OnMobile Global. 

Ambuja Cements slipped 3% to Rs 232 even as the company reported a 85% increase in its consolidated net profit of Rs 205.70 crore for the December quarter.

Gammon India gained 8% to Rs 13 after its board announced the sale of 26% equity shares of Gammon Infrastructure Projects through its holding company, Gammon Power.
 

Oil prices rise

Crude futures rose for a second day on Tuesday, with data showing hedge funds are betting big across oil markets following OPEC production cuts agreed last year.

US West Texas Intermediate crude was up 31 cents, or 0.6% at $53.71 a barrel after rising about 0.5% in a shortened session on Monday due to a US national holiday.

Brent futures gained 6 cents, or 0.1% to $56.24 a barrel, after ending the previous session up 0.7%.

Global markets

MSCI's broadest index of Asia-Pacific shares outside Japan was flat and held below a 19-month peak hit last Thursday. Australian stocks were down with investors watching first half results from the world's biggest miner by market value, BHP Billiton later in the day.

China's Shanghai Composite was up 0.2%, Japan's Nikkei added 0.6%, while Hong Kong's Hang Seng was little changed.