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Indian Shares Flat as IT Losses offset Auto Gains

BENGALURU (Reuters) - Indian shares were flat in volatile trading on Monday as IT stocks slipped from recent highs and offset gains in the auto and bank sectors.

The blue-chip NSE Nifty 50 index rose 0.09% to 17,869.1 by 0458 GMT, and the benchmark S&P BSE Sensex was up 0.14% at 60,130.4.

The Nifty volatility index rose 4.1%. Higher market volatility and occasional corrections could continue as the festive season rolls in, said AK Prabhakar, head of research at IDBI Capital.

Indian equities, however, have continued to outperform emerging market peers so far this year, helped by flush liquidity and quickening COVID-19 vaccination drives.

Auto stocks were up 1.3%, as Tata Motors rose 3% to top the Nifty 50, while peer Maruti Suzuki rose 2.6%.

Public sector banks advanced 1.3%, with Bank of Baroda jumping more than 2%.

IT stocks snapped four straight sessions of gains, with Wipro Ltd dropping more than 3% to lead losses on the Nifty 50 index.

Consumer goods stocks were also lower, with beer giant United Breweries falling as much as 4.3% after India’s antitrust watchdog on Friday imposed a penalty on it in a case related to cartelisation of beer prices.

Takeover target Zee Entertainment also fell, after media reports that one of its largest shareholders had renewed a demand to replace certain directors on the board.

Shares of cinema chain operators PVR Ltd and INOX Leisure rose as much as 10% and 18.43%, respectively, as the states of Karnataka and Maharashtra eased COVID-induced restrictions on theatres.

Asian shares crept higher as risk sentiment turned for the better, though a surge in oil prices to three-year highs could inflame inflation fears and aggravate the recent hawkish turn by some major central banks. [MKTS/GLOB]

Reporting by Soumyajit Saha in Bengaluru; Editing by Ramakrishnan M.

Source: Reuters

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