Sensex turns flat as profit-taking emerges

Although the Bombay Stock Exchange (^BSESN : 16158.28 +94.38) benchmark Sensex resumed weak on lack of any direction due to mixed global cues but it recovered early losses and was quoting in positive terrain later.

The 30-share barometer initially touched a low of 10,229.87 points before recovering to quote at 10,314.76 points at 1015 hrs, a rise of 39.16 points or 0.38 per cent over previous close.

The broad-based Nifty (^NSEI : 4796.15 +30.6) of the National Stock Exchange also rose by 5.20 points or 0.17 per cent from last close to 3,126.65 at 1015 hrs.

Market players attributed early weakness in share values to mixed trend in global markets. The Dow Jones Industrial Average and the Nasdaq Composite index ended in the red on Monday, while Asian indices displayed a mixed pattern of trading in early trade.

Metal and banking counters attracted good buying support and helped the recovery.

Late on Friday, the government announced another incentive package with additional sops to exporters and small-scale sectors besides removing External Commercial Borrowings (ECBs) norms and the Reserve Bank of India (RBI) also cut key interest rates to support the slowing economy.

Revival of buying by Foreign Institutional Investors (FIIs) also aided the firm trend as they picked up shares worth Rs 469.56 crore on Monday as per provisional data.

However, the market might get resistance at higher levels on expectations of lower than expected quarter three results to be announced from the weekend, according to analysts.