Sensex up 50pts in choppy trade

The markets have notched marginal gains in a relatively choppy trade, tracking a recovery in the European markets. However, upside may remain capped due to nervousness over global and domestic growth concerns.

The Nifty opened flat and touched a low of 4,808 around the noon session. The Nifty is now hovering around 4,848, up three points. The Sensex is at 16,187, up 48 points.

Asian markets have drifted lower on Monday as investor confidence remained low due to gamut of concerns: weak global growth outlook and debt crisis in Europe. The Nikkei, Hang Seng and Shanghai declined between 0.7-1  per cent each. European markets too have followed suit and opened on sedate note, but changed track soon after, the FTSE, CAC and DAX are up between 0.1-0.9 per cent each.

Back home, Reliance Industries, HDFC, and ITC have contributed 42 points on the Sensex. Other prominent gainers are JP Associates, Jindal Steel and BHEL.

There are only 13 components on the Sensex which are trading in red. Sun Pharma is the top loser, down over 2 per cent at Rs 457. DLF and Mahindra & Mahindra are down over 1 per cent each.

Oil & Gas shares are leading the gains because Brent crude eased to 105/bbl.  Petronet LNG surged over 3 per cent, followed by ONGC and BPCL, up over 1 per cent each.

Banks are the worst hit for the second consecutive day, although there are expectations that the Reserve Bank of India may tone down its aggressive policy stance due to recession fears globally. Union Bank is the top loser, down over 5 per cent, followed by Axis Bank and Bank of Baroda, down over 4 per cent each.

Market breadth is marginally positive, 1,304 stocks have declined, for 1,217 stocks advancing shares on the BSE.