Indian shares flat after nine-session rally to near record highs
Updates at 10:46 a.m. IST
By Bharath Rajeswaran
BENGALURU, Aug 28 (Reuters) -Indian shares were little changed on Wednesday, after a nine-session rally that left the benchmark Nifty 50 just shy of record highs, and analysts expect the market to drift ahead of key macroeconomic data later this week.
The NSE Nifty 50 index .NSEI sheda marginal 0.01% at 25,015.18 as of 10:46 a.m. IST. The S&P BSE Sensex .BSESN also dropped 0.01% to 81,712.
The Nifty 50 has added about 3.6% in the previous nine sessions, its longest daily winning run in 16 months. It is currently 60 points shy of its record high.
"While there will be occasional profit booking in select sectors at near record high levels like we are seeing in this session, markets will continue to demonstrate resilience and scale record highs anytime soon," said Deven Choksey, managing director of DRChoksey FinServ.
Foreign investors (FII) remained net buyers for a fourth session in a row on Tuesday. Domestic investors (DII) were net sellers, but only after having bought $5.8 billion of shares in the previous 16 sessions, boosting liquidity.
"Steady earnings growth and ample liquidity in the markets will continue to act as catalysts for further rise," Choksey said.
But, after the recent rally, the markets are likely to trade near current levels ahead of domestic quarterly growth and U.S. inflation readings later in the week, Choksey and two equity analysts said.
Eleven of the 13 major sectors logged losses. Financials .NIFTYFIN, which hasthe most weightage, lost about 0.35%.
However, IT stocks .NIFTYIT, which have the second-highest weightage, gained about 1.6%.
LTIMindtree LTIM.NS rose 6.2%, the most among IT stocks and the on the Nifty 50, after Kotak Institutional Equities upgraded the stock to "add" from "reduce".
NBCC NBCC.NS jumped 6% on plans to consider issuing bonus shares. It led gainerson the small-cap index .NIFSMCP100, which rose 0.25%. The mid-cap index .NIFMDCP100 was flat.
($1 = 83.9350 Indian rupees)
Reporting by Bharath Rajeswaran in Bengaluru; Editing by Sonia Cheema and Savio D'Souza
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
