Markets continue lacklustre trades

Bank and IT shares lead gains

Markets are trading on a flat note this afternoon with the Sensex gaining 42 points at 18,502. Nifty is up 6 points at 5,620.

"Nifty has given a decent downside rally from its recent high of 5780 while trading in lower highs and lower lows sort of downward channel from past few sessions. Although, nifty has given the breakout of same on last traded day but bias still remains negative until Nifty close above 5680," said Mudit Goyal, technical analyst, SMC Global.

Meanwhile in China, data showed a good expansion in the manufacturing sector. Shanghai Composite however is down 0.7% at 2016. Hang Seng and Nikkei, on the other hand, have jumped 1-2% each boosted by gains in automakers and electronics companies on expectations that a sharply weaker yen will boost their earnings.

Broader markets have advanced as well. The BSE mid-cap index is up 8 points at 6580. Small-cap index has added 26 points to 7,042.

From the sectoral pack, BSE bankex is up 0.6% at 13,234. PSU, capital goods and IT shares are also in green. On the other hand, consumer durables index is down half a per cent, followed by power, oil & gas and auto indices.

SBI is leading the gainers list - up 2% at Rs 2103. HDFC Bank is up 1% and has contributed the most to the Sensex's upmove. Infosys, Larsen & Toubro and Mahindra & Mahindra are the other key movers this afternoon.

On the other hand, Tata Motors has slipped 1% to Rs 262. Other tata group stocks-  Tata Power and TCS are down 0.3-0.7% each. Among other losers are Sun Pharma, BHEL and Hindalco. Index heavyweight - Reliance is flat at Rs 769.

Sterlite technologies has added 0.3% to Rs 29.85 after bagging a Rs 200 crore order.

BSE market breadth is neutral. Out of 2648 stocks traded, 1297 shares have advanced while 1213 shares have declined.