Bombay Stock Exchange's benchmark Sensex and NSE's Nifty opened flat on Monday and are hovering between the red and the green, signaling the volatility, as the market awaits June inflation figures.
Sensex was trading at 17227.54 up 16.83 points from its previous close and Nifty is at 5231.90 up 4.65 points at 10.10 a.m. local time. The CNX Midcap Index is up by 0.02 percent, while the BSE Smallcap Index is up by 0.2 percent. The market breadth is positive with 631 shares advancing against 537 shares declining on the NSE.
The markets are eagerly awaiting the wholesale price inflation (WPI inflation) data for June, which will be released later Monday. A Reuters' opinion poll indicated that inflation would most likely be at its highest in 2012.
Higher inflation means lesser scope for the Reserve Bank of India to cut the interest rates.
Analysts expect Indian markets to be volatile and, along with global cues, domestic factors like monsoon and the first quarter results of the companies will influence the markets this week.
Asian markets also are trading positively after China said it will take up more policy stimulus to boost growth in China.
Top gainers at Sensex and Nifty were Bharati Airtel, SBI, Godrej industries and Bajaj Auto. While the shares of Tata Steel and Jindal Steel declined in the morning session.
The rupee strengthened to more than a week high in the early session on Monday, as rebound in the equities and commodities boosted the domestic currency's rally. The latest China economic data which came out as better than expected bolstered the equities and markets, reported Reuters.
At 9:02 a.m., the rupee was at 54.89/90 per dollar as against 55.14/15 last close.