Sensex directionless; midcaps, smallcaps rise 1%

The BSE Sensex and NSE Nifty were trading flat since early trade while the midcaps and smallcaps outperformed benchmarks with 1% gains.

Investors keenly awaited the next trigger for the market after lot of developments in last two weeks locally and globally - FDI approvals in retail & aviation sectors, hike in diesel price by Rs 5 per litre, exit of Trinamool Congress from the UPA government, Samajwadi Party's support to government, Fed stimulus and positive European cues. Cabinet members will be meeting today in the evening to discuss restructuring of power sector loans, FDI in insurance and health etc.

The 30-share BSE benchmark was down 26 points to 18,727.23 and the 50-share NSE benchmark fell 2 points to 5,689.35. European markets declined 0.5-0.8% in early trade.

Fast moving consumer goods majors ITC and Hindustan Unilever were down 2.6% and 3.7%, respectively.

Housing finance company HDFC, software services exporter TCS and drug producer Cipla tanked 1.5-2%. Shares of Infosys and ONGC fell 0.7% each.

Country's largest lenders State Bank of India and ICICI Bank gained 1% each. Power equipment maker BHEL and steel & power producers Jindal Steel & Power retained their top positions in the buying list, rising 6% and 5%, respectively.

Engineering conglomerate Larsen & Toubro moved up nearly 1%. Shares of Mahindra & Mahindra, Tata Power and Sterlite rallied 3%.

The market breadth was quite strong; about 1000 shares advanced while 416 shares declined on the National Stock Exchange.

In the second line shares, ABG Shipyard, Prestige Estate, Motilal Oswal, Amtek India and Alstom T&D jumped 6-9% while Tulip Telecom, Glodyne Tech, Ruchi Soya, Apollo Tyres and GSFC lost 2.5-5%.