The benchmark indices closed the first session of this truncated week on a flat note. Both the indices traded with volatility throughout the session, ahead of F&O expiry on Wednesday. Power, metal, oil & gas and select telecom stocks, and stocks like SBI, HUL, Infosys, ACC, Ranbaxy, Tata Motors and Hero Honda witnessed selling pressure. There was some pressure from weak global cues.

However, buying in ICICI Bank, Wipro, TCS, BHEL, Sterlite, L&T, ITC, Axis Bank, Sun Pharma, Maruti and HDFC Bank supported the markets and capped the losses.

The 30-share BSE Sensex closed 42.80 points or 0.38% higher at 11,371.85, after witnessing an intraday high of 11,492.10 and low of 11,176.55. However, the 50-share NSE Nifty shut shop at 3470, down 0.31% or 10.75 points; it touched a high/low of 3517.25 and 3435.30, respectively.

Technical Analyst, Ashwani Gujral said, "There is a stiff resistance at 3,500-3,550 on the Nifty and today for the second time the market has come back from 3,517. It is still not weak but it could spend some time in this 3,300-3,500-3,550 kind of zone. It will become weak only once it breaks 3,300 on the downside. So there is some consolidation."

The broader indices witnessed profit booking; the BSE Midcap slipped 0.44% or 15.81 points, to 3,584.28 and the Smallcap Index fell 1.01% or 41.12 points, to settle at 4,027.14.

Volumes improved ahead of settlement day; total traded turnover stood at Rs 95,978.21 crore. This included Rs 15,322.32 crore from NSE cash segment, Rs 75,777.22 crore from NSE F&O and the balance Rs 4,878.67 crore from BSE cash segment.

Sectoral indices
The BSE Realty Index was down 2.42% or 54.54 points, to settle at 2,202.03, as Indiabulls Real plunged 11.08%. Unitech, Orbit Corporation, Puravankara Projects and Parsvnath fell 2-2.8%. However, DLF gained 0.72%.

Selling pressure was also seen in power stocks, where in Reliance Infrastructure, GVK Power, Reliance Power, Power Grid Corp, Suzlon Energy, Tata Power, CESC, GMR Infra and NTPC were down 1.4-3.9%. The BSE Power Index fell 21.55 points or 1%, to 2,128.29.

The Metal Index slipped 0.95% or 67.73 points, to close at 7,097.14, as Tata Steel, NALCO, SAIL, Hindalco, Sesa Goa, Jindal Saw and JSW Steel lost 2-2.9%.

Telecom stocks were also under pressure; Reliance Communication was down 3.75% and Tata Teleservices fell 2.77%. Idea Cellular, Tata Communication, Bharti Airtel and MTNL fell 0.34-0.9%.

There was a mixed trend in auto, oil & gas, FMCG and technology sectors. BSE Auto Index was down 0.71% or 24.78 points, to 3,450.73. Ashok Leyland, Amtek Auto, Hero Honda and Tata Motors were down 1.5-6%. However, Maruti Suzuki gained 0.65%.

The BSE Oil & Gas Index declined 0.54% or 43.94 points, to settle at 8,046.11. BPCL and ONGC fell 0.9-1.3%. Reliance Industries closed flat.

BSE FMCG and IT Indices ended flat at 2,109.79 and 2,555.60, respectively. In the technology space, Wipro and TCS were up 3.58-4%. However, Tech Mahindra, Patni Computer and Infosys fell 1-3.4%.

However, the BSE Bankex went up 2.41% or 134.89 points, to 5,726.59, as ICICI Bank surged 8.20%. Axis Bank was up 5.5% and Bank of Baroda gained 2.89% (post Q4 numbers). PNB and HDFC Bank were up 0.5-1% while SBI fell 1.96%.

In the capital goods space, L&T, BHEL and Punj Lloyd went up 1-2.5% while Siemens fell 1%. Respective Index rose 1.57% or 125.08 points, to 8,071.54.

The Healthcare Index closed at 3,093.44, up 0.95% or 29.06 points. Sun Pharma, Dr Reddys Labs, Cipla and Glenmark were the gainers while Wockhardt and Ranbaxy Labs were the losers.

Among the midcap stocks, Indiabulls Real, Aban Offshore, Praj Industries, Videocon Industries and Deccan Chronicle were down 6.5-11%.

In the small cap space, Zenith Infotech, Micro Inks, PNB Gilts, Accentia Tech and Tanla Solutions fell 9-10.8%.

The market breadth was marginally negative; about 1391 shares advanced while 1588 shares declined. Nearly 127 shares remained unchanged.

Global cues
Global markets were weak. At the time of closing of Indian equities, European markets were trading lower. The FTSE was down 36 points, to 4,119. The CAC fell 45 points, to 3,057 and the DAX declined 65 points, to 4,608.

The sell-off was seen in the US futures as well. The Dow Jones Futures slipped 131 points, to 7,925 and the Nasdaq futures fell 23 points, to 1,352.

Asian markets ended lower. Hang Seng was down 2.74% and Taiwan Weighted fell 2.99%. Straits Times was down 1.85% and Shanghai Composite fell 1.77%. Seoul Composite was down 1.05%. However, Nikkei was up just 0.21%.