Markets flat post PMI data

IT, auto shares hold on to gains

Markets continued to trade in the positive zone, albeit in a volatile fashion. The Sensex is up 22 points at 18,785. Nifty is flat at 5706.

"We are looking at 5630 to 5650 as the key support on the downside corresponding to the F&O expiry last week. On the upside 5750 is the resistance above which the markets can continue the uptrend towards the 5800 to 5850 mark," said Parag Doctor, Head- trading strategies, Keynote Capitals Ltd.

India's manufacturing activity growth in September held steady compared with August, supported by a pick up in export orders and output, a business survey showed on Monday, but an increase in inventories could hurt growth in the future.

The HSBC manufacturing purchasing managers' index (PMI), which gauges the business activity of India's factories but not its utilities, held steady at 52.8 in September from 52.8 in August, which was a nine-month low.

BSE IT index remained the top gainer -  up 1% at 5,9832. Auto index moved up 0.5% ahead of the monthly sales figures from vehicle companies. However, weakness was noticable in metal, bankex and power indices.

Tata Power slipped 0.7% at Rs 106. HDFC, ONGC, ICICI Bank and Hindalco are down as well. On the other hand, Infosys has added 2% at Rs 2587. Sun Pharma is up 1%, followed by Cipla, TCS, Tata Motors and BHEL.

In other stocks, Kingfisher has slipped 5% to Rs 15.35 after cancelling a number of flights. Aviation regulator DGCA will today review Kingfisher Airline's operations in the wake of mass cancellation of its flights, even as a section of the airline's Mumbai-based pilots join in the strike by its engineers.

Colgate-Palmolive (India) fell 1% at Rs 1,195 after the stock turned ex-dividend today, 1 October 2012, for an interim dividend of Rs 13 per share for the year ending 31 March 2013.