Nifty flat; IT stocks rebound on short covering

Moneycontrol Bureau

The Nifty was trading flat in the afternoon session as traders maintained a cautious stance ahead of the RBI credit policy on May 3. The uncertainty on the political front was also keeping traders in check. European markets opened in green. The market will remain shut on Wednesday.

The Sensex was up 0.77 point 19287.49, and the Nifty was up 3.90 points at 5875.35. About 1164 shares advanced, 1006 shares declined, and 1500 shares remain unchanged. 

Hero MotoCorp was top gainer in the Sensex, up almost 3 percent. Wipro was up 2.4 percent on short covering. Jindal Steel touched fresh 52-week low after disappointing results.

IT stocks bounced back in trade today after hammering last week. HCL Tech and Wipro were up over 2 percent each.

Realty stocks were doing well today. Indiabulls Real Estate was up around 7 percent, HDIL gained 2.7 percent, Unitech was up 1.9 percent.

BSE banking index has surged 10 percent this month as many believe RBI will cut interest rates this Friday. In the aviation sector, SpiceJet has rallied 43.34 percent so far this month while Jet Airways has risen 18.72 percent on renewed optimism post Jet-Etihad deal.

Sterlite Industries' copper smelter will remain shut for now as a local environmental court transferred a case over its closure to New Delhi, extending a month-long closure at the facility that meets half of the country's copper demand, reported Reuters. The stock was up 1 percent ahead of results.

Transformers and Rectifiers was one of the biggest gainers in the broader market. "The company is confident of maintaining growth rate going forward. Currently, it has total order book of Rs 650 crore," said the company's management to CNBC-TV18.