The market, which gave up some gains after a smart surge earlier in the day, is moving in a tight band for over three hours now with investors mostly treading cautiously amid a lack of prominent triggers. Though a few front line stocks are trading firm thanks to some short-covering ahead of expiry of near month derivatives contracts, the market is highly lackluster today.
According to reports, Deutsche Bank has upgraded Indian stocks to 'overweight' from 'neutral', saying the market is close to its cheapest in two decades from an EBITDA and sales perspective.
Echoing similar sentiment, Standard Chartered said that it sees an upside in some Indian stocks in which bad news has had a "disproportionate impact".
Power, metal and information technology stocks are finding some support. Healthcare, bank and capital goods stocks are also trading slightly higher.
FMCG, realty and PSU stocks are trading mixed. Oil, consumer durables and automobile stocks are a bit weak. Select midcap and smallcap stocks have rallied sharply. The market breadth is positive.
The Sensex, which rose to 17,029.27 in morning trades, is now up 65.65 points or 0.4% at 16,972.23. At 5142.80, off the day's high of 5160.10, the Nifty is up 22 points or 0.43% from its previous closing mark.
Tata Power is up by around 2%. Tata Steel, Hindalco, Coal India, Sun Pharmaceutical Industries, Tata Consultancy Services, ICICI Bank and Infosys are up 1% - 1.8%. HDFC Bank, NTPC, Sterlite Industries, GAIL India, BHEL, ITC, Dr Reddy's Laboratories and Larsen & Toubro are also trading firm.
Tata Motors is down with a loss of 1.6%. Mahindra & Mahindra is down nearly a percent, while ONGC, Bharti Airtel and Reliance Industries are trading lower by around 0.5%. State Bank of India and Hindustan Unilever are down marginally.
Manappuram Finance is up more than 6% thanks to sustained buying at the counter. United Breweries has spurted 5.5%. Power Finance Corporation, United Phosphorus, Opto Circuits, Strides Arcolab, REC, IDFC, Mphasis, Gujarat Minerals, JSW Energy, Wockhardt and Dish TV India are up 2% - 4.5% now.
Andhra Bank is down by over 6%. Tata Communications is trading lower by 2.4%. Kotak Bank, Indiabulls Financial Services, Yes Bank, Alstom T&D, Pantaloon Retail, ACC, Ultratech Cement, Canara Bank and LIC Housing Finance are also trading notably lower.