The markets traded flat in the noon trades with the BSE Sensex, down 10 points at 18,713 and the S&P CNX Nifty down one point at 5,630.
Weak Asian markets added to the negative sentiment which subsequently had an impact on the Indian bourses. The Shanghai Composite index was at 2,699, down 2.3%, The Hang Seng was at 22,268, down 0.8% and the Nikkei was at 10,050, down 0.8%. Earlier in the day, the Asian markets began the week on a negative note with all the indices starting in the red. After a stellar week, the indices fell as US leaders failed over the weekend to agree to raise the nation's debt ceiling ahead of a looming deadline on Aug 2, raising worries about a possible sovereign default.
Reliance Industries jumped to a high of Rs 893 - up over 2% from the previous close after the government approved the BP deal. The Centre on Friday gave an unconditional approval to the India's biggest private sector company, to sell 30% interest in 21 blocks to British Petroleum. The government, however, withheld permission for another two blocks.
Reliance Communication, Bharti Airtel, Sterlite Industries, Mahindra & Mahindra and Reliance Industries have gained the most among the the Sensex 30 stocks. On the other hand, ITC, HDFC, Cipla, Hindustan Unilever and Infosys are the biggest loser among the pack.
Among the sectoral indices, BSE FMCG had shed the most at 4,064, down 1.1%. Godrej Consumer Products, ITC and Colgate Palmolive are the biggest losers, down 2% each. BSE IT, BSE Bankex and BSE Power are the other sectors that are in the negative.
BSE Healthcare and BSE Oil & Gas sectors have gained the most, up 1% each.
The broader markets are comparatively firm with both, BSE mid-cap index and small-cao index, having gained 0.5% each.
The overall market breadth is positive as 1,519 stocks advanced and 1,110 stocks declined on the BSE.