Shares of Tata Steel rallied smartly in trade and gained more than 2%, after Citi upgraded the company to 'buy' from 'neutral', on the back of attractive valuations.

Other index stocks that gained in trade included Infosys Technologies, HDFC and Coal India. Index stocks that lost ground in trade today were Bhel, Axis Bank, Jindal Steel and State Bank of India.

Shares of Bharti Airtel rallied by more than 2%, after reports that the company would file a DRHP with SEBI this week for a proposed IPO of Bharti Infratel.

Shares of heavyweight Reliance Industries and ITC ended the day flat, after trading in a range for most of the day.

Markets are expected to largely trade flat ahead of key data points, including the IIP number and inflation number that is due later this week.

On the global front markets would eagerly await verdict from a German Constitutional Court, which would decide on European Stability Mechanism on September 12. Apart from this markets are also expected to eye whether the Federal Reserve provides further stimulus measures when its policy meeting ends on September 13.

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