Markets trade flat; buoyed by short covering

Indian equity markets on Monday traded on a flat note during the mid-afternoon session as investors' sentiments were buoyed on the back of positive Asian markets, coupled with short covering and value-buying.

The key domestic indices traded marginally in the green, with healthy buying witnessed in oil and gas, automobile and healthcare stocks.

The wider 51-scrip Nifty of the National Stock Exchange (NSE) edged up by 6.95 points or 0.09 per cent to 8,121.25 points.

The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 26,303.52 points, traded at 26,336.02 points (at 1.30 p.m.) -- up 19.68 points or 0.07 per cent from the previous close at 26,316.34 points.

The Sensex has touched a high of 26,405.72 points and a low of 26,183.22 points during the intra-day trade so far.

The BSE market breadth was skewed in favour of the bulls -- with 1,646 advances and 764 declines.

According to Dhruv Desai, Director and Chief Operating Officer of Tradebulls, the CNX Nifty traded firm due to short covering.

"IT stocks faced selling pressure at higher levels and traded with volatile sentiments, while banking stocks witnessed good recovery from lower levels," Desai said.

"Pharma, auto, textile, aviation, FMCG, cement and power stocks traded with sideways-to-firm sentiments due to short covering and lower levels buying from traders."

On Friday, the equity markets closed in the green on the back of short covering, along with value-buying and rupee appreciation.

The barometer index was up 456.17 points or 1.76 per cent, while the NSE Nifty gained 148.80 points or 1.87 per cent.

--IANS

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