Sensex, Nifty flat; Cipla soars, PSU banks rebound

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The BSE Sensex traded flat with a positive bias Wednesday tracking sluggish trade across global markets. The Nifty index held on to the key 5,200 mark, bolstering confidence among investors. The rupee, too, gained and traded at 55.57 to the dollar.

Indian markets have rallied sharply over the last few days on the back of strength in global stocks. However, the excitement in global markets seems to be tapering now.

Japan's Nikkei index was down over 1 per cent. Most other Asian stocks traded flat to negative. However, Chinese stocks gained on hopes of government action after manufacturing output in July, as measured by the PMI index, grew at the slowest pace in eight months.

Investors hope that the European Central Bank and the US Federal Reserve would announce monetary easing to drive the global economy.

At 09.25 a.m., the Sensex traded 22 points or 0.13 per cent higher at 17,258, while the Nifty index advanced 6 points to 5,235.

Healthcare stocks saw strong buying interest in a dull market. Drug maker Cipla was the top Nifty gainer on the back of strong June quarter. The stock jumped nearly 6 per cent in early trade.

Ambuja Cements and heavy equipment maker BHEL gained 1.5-2 per cent. SBI, India's biggest PSU lender, bounced back after the sharp fall yesterday. It traded with over 1 per cent gains.

Other state run banks like Bank of Baroda and PNB also bounced back and traded with over 1 per cent gains.

23 of the 50 stocks traded lower on the Nifty index. Iron ore miner Sesa Goa was the top Nifty loser, down 1 per cent.

The market breadth was positive with over 65 per cent stocks rising on the BSE 500 index.

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