BSE Sensex barely changed; lenders up; techs down

The BSE Sensex was barely changed on Monday, amid subdued Asian peers, with uncertainty about the fate of U.S. debt talks triggering a new round of risk aversion, at a time when euro zone debt jitters already weighed.

Financials and metal makers advanced, while software stocks traded in the red.

At 12:06 p.m. (0636 GMT), the 30-share BSE index was up 0.03 percent at 18,567.69 points, with 19 components advancing, in flip-flop trade. It had fallen 1.6 percent last week.

"With the debt issues popping up in the U.S., things have turned uncertain. Let us see how the situation unfolds," said Deven Choksey, managing director and CEO of KR Choksey Shares.

With five days remaining before President Barack Obama's deadline for a deal to raise the U.S. debt ceiling, Republicans and Democrats have yet to agree on a big plan to cut the world's largest economy's deficit and raise its debt limit in time to avoid an unprecedented U.S. default.

"Europe is also dealing with its issues, which is a known fact," Choksey added.

Foreign funds have invested a net of $2.6 billion in Indian equities since June 23, as economic woes in the developed world, have prompted them to shift focus towards emerging economies.

But dealers said it was just a shift of funds, while the overall risk appetite tapered off.

The 50-share NSE index was down 0.03 percent at 5,579.35 points.

Market breadth was positive with gainers more than double the number of losers on the NSE, where 185 million shares changed hands.

Lenders advanced with the banking sector index rebounding 0.2 percent after declining 0.5 percent last week.

Top lender State Bank of India and private lender HDFC Bank rose 0.2 percent and 0.9 percent respectively. Leading private lender ICICI Bank bucked the trend and shed 0.4 percent.

Bajaj Auto gained 0.5 percent after the automaker said late Friday its project to develop four wheelers for Nissan Motor Co and partner Renault SA was on track.

Metal makers Sterlite Industries and Hindalco gained 0.6 percent and 2.6 percent respectively as base metal prices firmed in international trade.

London copper edged up extending modest gains from the previous session, as supply risks supported the metal even as the outlook for the global economy and demand remained shaky.

Software firms led the decline, with the IT sector index trading 0.6 percent lower, after shedding more than 5 percent last week on concerns over the global economy.

Sector leaders Tata Consultancy Services and Infosys were down 1.4 percent and 0.4 percent respectively.

The MSCI's measure of Asian markets other than Japan were down 0.6 percent, while Japanese markets were closed for a public holiday.

STOCKS ON THE MOVE

* Rolta India slipped 0.8 percent to 126.50 rupees, as the technology firm said it has acquired ACLS Systems, FZC, a public system and emergency response software company, through a complete asset purchase.

* India Glycols gained 1.8 percent to 156.75 rupees, after it reported a net profit of 257.7 million rupees for June quarter, as against a loss of 76.9 million rupees a year ago, two dealers said.

TOP 3 BY VOLUME on NSE

* Unitech on 6.7 million shares

* Rushil Decor on 4 million shares

* Suzlon Energy on 3.4 million shares

(Reporting by Ami shah; editing by Malini Menon)