The Sensex and Nifty were trading marginally higher as gains in financials on positive corporate results offset losses in IT stocks, which were down on weak sentiment and after software services exporter Infosys Ltd cut its revenue outlook.
Market witnessed bargain-hunting as well as short-covering amid lack of direction, though caution gripped ahead of key index heavyweights RIL Q3 results to be released later in the day
At 1.35 p.m., the 30-share BSE index Sensex was up 68.3 points or 0.25 per cent at 27,306.36 and the 50-share NSE index Nifty was up 15.35 points or 0.18 per cent at 8,415.70.
Among BSE sectoral indices, realty index gained the most by 2.36 per cent, followed by consumer durables 1.39 per cent, metal 1.17 per cent and banking 0.88 per cent. On the other hand, IT 0.66 per cent, TECk 0.44 per cent, oil & gas 0.31 per cent and FMCG 0.21 per cent.
Top five Sensex gainers were Tata Motors (+2.76%), Tata Steel (+2.63%), Adani Ports (+1.75%), Power Grid (+1.52%) and SBI (+1.34%), while the major losers were Infosys (-1.45%), Reliance (-1.19%), ONGC (-1.04%), GAIL (-0.95%) and ITC (-0.68%).
“Financials are up because three bank results have come out and they have been good. There is a weak sentiment with regard to IT stocks as investors wait for further clarity on Trump policies and after Infosys' quarterly results that weren't very good,” said Mahantesh Marilinga, senior research analyst, Finquest Securities.
Trump's inauguration
All eyes will be on US Preseident-elect Donald Trump's inauguration on Friday for any clarity on his economic plans.
Infosys Ltd, India's second-biggest software services exporter, pared full-year revenue growth outlook on Friday, as it fights uncertainties in its biggest markets that could curb client spending on technology.
“IT stocks' valuations are already quite cheap and the downside is limited, but don't expect them to outperform," Marilinga said.
The Nifty IT index was down as much as 1.23 per cent, with losses led by HCL Technologies which was down 1.82 per cent, followed by Infosys, which fell 1.65 per cent.
Among gainers, State Bank of India rose 1.12 per cent, followed by HDFC Bank which was 0.39 per cent higher.
The Nifty Bank index was up as much as 0.47 per cent, its highest since November 21, 2016.
Foreign portfolio investors sold shares worth Rs 117.59 crore on Friday, as per provisional data released by the stock exchanges.
Asian markets
Sterling slid to three-month lows in Asia on Monday with investors spooked anew by concerns over Britain's divorce from the European Union, while US policy uncertainty lingered ahead of President-elect Donald Trump's inauguration.
Regional share markets were hesitant. MSCI's broadest index of Asia-Pacific shares outside Japan eased 0.5 per cent, Japan's Nikkei lost 0.6 per cent and Shanghai shed 1.4 per cent.
A report by SMC Global said: "US stock futures fell as the pound tumbled as much as 1.6 per cent on worries that UK Prime Minister Theresa May will seek a hard Brexit from the European Union. US stocks ended mixed on Friday, with the Nasdaq Composite Index outperforming peers to post its sixth lifetime high in the last seven trading sessions. The indices will remain shut today on account of a holiday. US retail sales climbed by 0.6 per cent in December after edging up by a revised 0.2 per cent in November. Economists had expected retail sales to advance by 0.7 per cent compared to the 0.1 per cent uptick originally reported for the previous month."