BSE Sensex turned flat in afternoon trade after edging past the 28,000 mark. The Sensex rose over 150 points at its day's high to 28,064 on the back of positive momentum on hopes of faster reforms. But it could not sustain the gains amid weak global cues.
At 1:17 pm, the Sensex was down 4 points to 27,883. Nifty was marginally lower at 8,389, after rising to 8,445 at day's high.
India's top bankers had gathered in Pune during the weekend to discuss long-pending reforms vital to improving the health of ailing public sector banks in Asia's third-largest economy. Prime Minister Narendra Modi, Finance Minister Arun Jaitley and RBI governor Raghuram Rajan attended the 2-day retreat which ended on Saturday.
Gauri Shankar, ED at Punjab National Bank and who attended the meet, said that banking reforms are in the mind of the government. Banking stocks were flat today on profit-taking after last week's rally.
TS Harihar, Chief Executive and Founder of HRBV Client Solutions Private, said that though the undertone of Indian markets is positive, investors need to be watchful of global events such as ECB meet, Greece elections and dollar's strength vs Euro. Besides, the management commentary from Infosys will also closely followed by the markets, he added. Infosys kicks off the earnings season on Friday.
Weakness was seen in IT stocks amid concerns over cross-currency movements. The euro hit a nearly nine-year low versus the dollar on Monday as investors bet on quantitative easing by the European Central Bank while soft manufacturing surveys pushed down shares and sent oil prices to 5 1/2-year lows.
Among IT stocks, TCS and HCL Tech were down over 1 per cent.
Capital goods, and metal were among the gainers today. JSPL, L&T, and Tata Steel were up between 1.5 per cent and 2 per cent. (With Agency Inputs)