Markets traded in a 233 points range in the morning Session. Sensex opened in the green and surged to 19,431, but the benchmark erased all gains, hitting a low 19,198. Currently, the Sensex gained 148 points, at 19,372 and the S&P CNX Nifty was up 51 points, at 5814.
Markets continued to remained volatile as investors were cautious over expectations of interest rate hike later this month. Sukumar Rajah, MD & CIO – Asian Equities, Franklin Templeton Investments said, "While higher prices will increase input costs, companies are likely to pass these costs on, if demand remains high. However, inflation remains a key concern, given the implications for higher interest rates and drag on overall economic growth."
Metal shares added sheen this morning, Hindalco Industries and Hindustan zinc were the top gainers, up 3% each, followed by Sesa Goa, up 2.3% and Sterlite Industries, up 2.3%.
Even Auto shares were in the top gear leading the sectoral pack. Bajaj Auto, up 2.9%, Bharat Forge, up 1.9%, Amtek Auto, up 1.7% and Tata Motors, up 1.3% were the top gainers.
BSE Realtyindex was on a shaky ground dragged by Unitech, down 3.7%, followed by Peninsula Land, down 3.2% and Phoenix Mills, down 2.1%.
Top gainers on the benchmark were BHEL, up 2%, State Bank of India, up 1.8% and ONGC, up 1.6%. Only six components on the Sensex were trading in the red, DLF was down 1%, followed by TCS, down 0.8% and Infosys, down 0.5%.
Broader markets remained flat; the midcap and smallcap indices were up 0.6% each.