Sensex trades flat; investors book profits

Mumbai: Indian shares traded flat on Thursday, faltering a bit after having touched record highs in the previous session as investors booked profits in recent outperformers such as State Bank of India.

Sentiment was further subdued as US and European stocks were knocked lower on Wednesday due to earnings concerns. Asian shares were largely flat on Thursday, with the MSCI’s broadest index of Asia-Pacific shares outside Japan down 0.09 per cent.

Analysts said the outlook for markets would return to earnings, a day after indexes hit all-time highs after the government said it would inject $32.4 billion into state-owned lenders.

Yes Bank Ltd and Mangalore Chemicals and Fertilisers Ltd are among the companies scheduled to report results later in the day. “In the short term, earnings will dictate the next move of the market and global sentiment,” said Neeraj Dewan, director, Quantum Securities.

The broader NSE Nifty was up 0.09 per cent at 10,304.50 as of 0614 GMT. The benchmark BSE Sensex was 0.08 per cent lower at 33,016.21.

Caution also prevailed ahead of the expiry of futures and options contracts later in the day.

State-owned lenders had mixed fortunes. State Bank of India was down 0.46 per cent, after surging 28 per cent on Wednesday, while Punjab National Bank gained 3.2 per cent, adding to its 46 per cent gain on Wednesday.

Larsen & Toubro rose 2 per cent, advancing for a second day after the government on Tuesday announced plans to invest Rs 6.92 trillion ($106.82 billion) in five years to build roads in the country.