Sunday, July 3

Indian shares muted as Reliance, tech stocks counter auto losses

Article content

BENGALURU — Indian shares were flat on Thursday as losses in auto stocks were offset by gains in Reliance Industries and technology firm Tata Consultancy Services, while global investor sentiment soured on concerns over high inflation and the risk of a US recession.

The NSE Nifty 50 index was up 0.06% at 16,532.35 by 0518 GMT and the S&P BSE Sensex rose 0.07% to 55,415.68.

In the previous session, both indexes swung between gains and losses for most of the day and settled slightly lower as pharma and technology stocks fell.

Article content

“We are seeing a kind of a breather and there is some selective buying,” said Ajit Mishra, vice president, research at Religare Broking.

“Globally inflation concerns remain and until there are significant developments, we will continue to see muted movement in domestic markets.”

Asian shares fell as investors fretted over uncertainty caused by the US Federal Reserve’s pace of interest rate hikes, the impact of the Russia-Ukraine war, and supply chain constraints worsened by strict COVID-19 curbs in China.

In domestic trading, automaker Hero MotoCorp fell 3.6% and was the top percentage loser on the Nifty 50 index. This pushed the Nifty auto sub-index 0.43% lower.

Index heavyweights Tata Consultancy Services and Reliance Industries supported gains on the Nifty 50 index and rose more than 2% each.

Conglomerate Reliance said on Wednesday its retail arm’s unit Reliance Brands and Italy’s Plastic Legno SPA signed a joint venture deal to buy a 40% stake in Plastic Legno SPA’s toy manufacturing business in India.

IT stocks snapped two consecutive sessions of losses and rose over 1%.

Financial services firm Religare Enterprises jumped 11.9% after it said lenders of its debt-ridden unit, Religare Finvest, had in-principle agreed to consider a one-time settlement offer. (Reporting by Chandini Monnappa in Bengaluru; Editing by Shailesh Kuber)