Key indices were trading in a narrow range near flat line in mid-morning trade. At 11:18 IST, the barometer index, the S&P BSE Sensex, was down 3.89 points or 0.01% at 35,223.37. The Nifty 50 index was down 6.50 points or 0.06% at 10,689.70.
Among secondary barometers, the BSE Mid-Cap index was up 0.04%. The BSE Small-Cap index was down 0.87%. Both these indices underperformed the Sensex.
The market breadth, indicating the overall health of the market, turned weak. On BSE, 692 shares rose and 1,649 shares fell. A total of 151 shares were unchanged.
Cement shares declined. Ambuja Cements (down 0.81%), ACC (down 0.64%) and UltraTech Cement (down 0.27%), edged lower.
Grasim Industries was down 0.31%. Grasim has exposure to cement sector through its holding in UltraTech Cement.
Telecom shares declined. Reliance Communications (down 2.74%), Tata Teleservices (Maharashtra) (down 0.98%), Bharti Airtel (down 0.94%) and MTNL (down 0.62%), edged lower. Idea Cellular was up 1.46%.
Telecom tower infrastructure provider Bharti Infratel was down 0.37%.
Overseas, Asian stocks were trading higher, tracking gains seen on Wall Street on Friday, 1 June 2018. US stock-market indices jumped on Friday, following a solid jobs data for May, while shrugging off concerns over Italian politics and trade wars.
The US labor market remains strong with 223,000 new jobs created in May, while the unemployment rate fell to an 18-year low of 3.8%. Wage growth was modest, with the yearly rate of pay rising to 2.7% from 2.6%. Receding fears about political upheaval in Italy also helped boost sentiment.
Despite the positive mood, trade concerns continued to linger after US-China trade talks yielded no major breakthroughs. China threatened that previous trade agreements negotiated by the countries will not take effect if the Trump administration goes ahead with a planned tariff increase.
US allies also took aim during a G-7 finance leaders meeting at metals tariffs imposed by the Trump administration.
On the US data front, the Institute for Supply Management said Friday that its manufacturing index rose to 58.7%, up 1.4% from April and a two-month high.
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