By Bharath Rajeswaran
BENGALURU (Reuters) -Indian shares were little changed on Wednesday as broad-based profit booking offset gains in information technology (IT) stocks after softer U.S. producer prices data signalled cooling inflation in the country.
The NSE Nifty 50 index was up 0.04% at 24,149.05 as of 10:34 a.m. IST, and the S&P BSE Sensex inched up 0.08% to 79,016.65. Both the indexes fell about 0.2% each in early trade.
The IT index gained 1.1% after data showed that U.S. producer prices rose less than expected in July. Indian IT companies earn a significant share of their revenue from the U.S.
The U.S. consumer price data for July, due after Indian market hours on Wednesday, is the next major data point that investors will closely watch.
Nine of the 13 major indexes logged losses. The broader, more domestically focussed small- and mid-caps shed about 0.4% each.
“Bouts of profit booking and consolidation near current levels is to be expected,” said Pramod Gubbi, co-founder of Marcellus Investment Managers.
“June-quarter earnings have been fairly modest, which is also weighing on sentiment. Our market is guided largely by flows, which is preventing further downside despite a fairly disappointing results season,” Gubbi added.
Two-wheeler maker Hero MotoCorp fell 4.25% after missing June-quarter profit estimates. The stock was the top Nifty 50 loser.
Non-bank lender Piramal Enterprises lost 9% after posting a drop in net profit in the June quarter.
Hospital-chain operator Apollo Hospitals gained 3.6% after beating June-quarter profit expectations, helped by strong demand. The stock was the top Nifty 50 gainer.
Hindalco Industries gained 1% after analysts reiterated their positive view of the metals maker, citing strength in its balance sheet and an attractive valuation.
Marksans Pharma jumped 9% after its net profit grew 30% for the June quarter.
(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Eileen Soreng, Mrigank Dhaniwala and Sonia Cheema)
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