Market traded flat amid volatility, auto stocks gain on price cuts

The domestic share market indices traded on a positive note on Monday, buoyed by gains in auto and metal stocks, with optimism around sweeping GST tax cuts and China’s steel reforms supported investor sentiment amid expectations of a Federal Reserve rate cut this month.At close, the Sensex was up 76.54 points or 0.09 percent at 80,787.30, and the Nifty was up 32.15 points or 0.13 percent at 24,773.15.
Tata Motors, JSW Steel, Eicher Motors, M&M, Bajaj Auto were the top gainers on the Nifty, while losers included Trent, SBI Life Insurance, Asian Paints, IndusInd Bank, Tech Mahindra.On the sectoral front, Auto index rose 3%, oil & gas, PSU Bank, metal up 0.5% each, while IT index shed 0.5%.BSE Midcap and smallcap indices up 0.5% each, according to information.
Trading Guide:
Vinod Nair, Head of Research, Geojit Investments stated,the domestic market failed to sustain its early gains as a late-session sell-off reflected the prevailing “buy-on-dips, sell-on- rallies” strategy, highlighting investor caution. Auto and ancillary stocks continued to rally on expectations of demand recovery following GST rate cuts, while IT remained weak amid global uncertainties.Globally, sentiment improved after soft U.S. jobs data raised hopes of a Fed rate cut in September. However, renewed concerns over sanctions on Russian oil pushed crude prices higher, and gold extended gains as trade-related uncertainties sustained demand for safe-haven assets.
Market experts recommended five shares to buy Monday-Indian Metals and Ferro Alloys, NDR Auto Components, Varroc Engineering, Carysil and Avalon Technologies.

(Business Correspondent)