The markets ended on a flat note on Monday with both Indian benchmark indices closing in the green owing to encouraging IIP data released for January. However, trading continued to be volatile in the wake of anticipation over the upcoming RBI monetary policy review and the budget scheduled to be held this week.

The Nifty was up 0.49 per cent to close at 5,360 gaining 26 points while the Sensex rose by 0.48 per cent or 85 points and closed at 17,588. The rally was supported by movement in capital goods and infrastructure, banks and consumer durables stocks. IT and technology and health care stocks however closed in the red on Monday.

“The positive IIP data helped boost market sentiment amidst speculation that RBI may not reduce the CRR further on the upcoming policy review day on Thursday,” said Mr Alex Mathew, Head Research at Geojit BNP Paribas Financials Limited.

Volatility was up, with the India Vix closing up 3.14 per cent at 27. “Volatility would continue to rise till the budget date as there is lot of uncertainty regarding what announcements the government is going to make,” added Mr Mathew.

SBI, L&T, Reliance, Siemens and Reliance Power were the top five Nifty gainers while Mahindra & Mahindra, ONGC, TCS, Cipla and HDFC were the losers on the Nifty.

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