Markets end flat amid volatile trade

The Sensex ended down 5 points at 27,860 and the Nifty ended up 2 points at 8,324

 Markets ended flat after recording fresh highs in early trades with auto shares leading the decline amid weak October sales.

The 30-share Sensex ended down 5 points 27,860 and the 50-share Nifty ended up 2 points at 8,324.

Foreign institutional investors were net buyers in equities to the tune of Rs 1,755 crore on Friday, as per provisional stock exchange data.

However, the broader markets continued to hold investor interest.

The mid and smallcap indices were up well over 1% each, outperforming the BSE benchmark index which was down 0.1%.

Among macro economic data, factory activity expanded at a modest pace in October, as stronger demand led manufacturers to add jobs for the first time in four months and allowed them to raise prices, a business survey showed on Monday.

The HSBC Manufacturing Purchasing Managers' Index (PMI), compiled by Markit, rose to 51.6 in October from 51.0 in September.

The index has now been above the 50 level that indicates an expansion in activity for a year. The rupee was trading at its previous closing levels of 61.40.

Custodian banks were selling dollars for their foreign fund clients. Sectors & Stocks On the sectoral front, Auto, Consumer Durables indices were down upto 1.6% along with Metal and Oil adn Gas indices down 0.2% each.

Among the ones in green, Realty index was the top gainer, up 3.7% followed by Health Care and Banking index up 0.4% each.

Shares of most of the frontline automobiles companies were in red after reporting drop in vehicle sales during the month of October. M&M, Maruti, Bajaj Auto, Hero MotoCorp and Tata Motors down 0.8-3% were the draggers in this space and were also the top losers among the Sensex scrips.

Real estate and infrastructure scrips attracted investor interest as the government relaxed foreign direct investment (FDI) rules in the construction sector by reducing minimum built up area as well as capital requirement and easing exit norms.

Some of the gainers in this space were Unitech, HDIL, Indiabulls Real Estate, Prestige, and DB Realty up 4-11%.

Among the Sensex-30, financial names like Axis Bank, ICICI Bank, SBI and HDFC were the top gainers up 0.7-1.5%.

Sesa Sterlite, Infosys, Sun Pharma and Dr Reddys up 0.6-2% were the other notable gainers. On the other hand, GAIL, Coal India, NTPC and BHEL down 1-6% were the notable losers.

Excel Industries was locked in upper circuit at Rs 384 after reporting a robust 147% year-on-year jump in net profit at Rs 10.74 crore for the second quarter, on back of strong operational performance. JK Cement rallied 9.4% to Rs 660 after reporting a net profit of Rs 32.32 crore in September 2014 quarter, on back of improved volume and better realization.

The company had a loss of Rs 21.45 crore in the same quarter last fiscal. Karnataka Bank surged 6% to Rs 131 after reporting a more-than-double net profit at Rs 88.46 crore for the second quarter ended September 2014, on account of lower provisioning.

The private sector bank had profit of Rs 28.95 crore in the same quarter last fiscal.

Suven Life Sciences rallied 6% to Rs 225 after the drug maker said their new chemical entity (NCE) SUVN-G3031 for cognition in Alzheimer’s disease has commenced Phase 1 clinical trials in USA.

Apollo Tyres moved higher by 5% to Rs 230, after the company said that the Delaware Court in the US has ruled in favour of Apollo's motion for Entry of a Declaratory Judgment.

The market breadth was positive on BSE. 1,827 stocks advanced while 1,153 stocks declined. Global Markets Asian markets were mixed as investors digested a series of Chinese data.

The Japanese markets were closed for a holiday.

China's services sector grew at its slowest pace in nine months in October as a cooling property sector weighed on demand, a survey showed on Monday, adding to signs of fragility in the world's second-largest economy.

The official non-manufacturing Purchasing Managers' Index (PMI) fell to 53.8 in October from September's 54.0, which was the weakest reading since January, the National Bureau of Statistics said. Straits Times, Taiwan Weighed and Shanghai Composite were up 0.3-0.4% while Hang Seng, Kospi and Jakarta Composite slipped 0.3-0.6%.

European markets had a tepid opening and were largely in red. All the major markets were down 0.4-0.7%.