Markets trade in narrow band

The markets have gyrated between zones in early trades, albiet in a narrow range. The Sensex so far has touched a high of 16,552, and a low of 16,396. The BSE benchmark index is now down 55 points at 16,412.

The NSE Nifty has declined 18 points to 4,922.

The BSE IT index has rallied 2% to 4,929, led by strong gains in Infosys. Most of the other sectors including the broader indicies are trading on a subdued note.

The markets are awaiting the monthly inflation numbers, which could give strong cues about the likely RBI action later this week. Also, the corporate advance tax numbers will be keenly watched by the Street for further market action.

Among the index stocks - IT majors Infosys, Wipro and TCS are leading the gains, up 1-2% each. Tata Motors has gained 1.5% at Rs 142.

On the other hand, Tata Power has dropped nearly 3% to Rs 956. Cipla, HDFC, Hindalco, Larsen & Toubro, Bharti Airtel and Maruti are the other major losers.

The market breadth is marginally positive - out of 2,360 stocks traded so far, 1,169 have advanced on the BSE.