Indian shares were little changed on Wednesday, as investors awaited key U.S and domestic inflation data for cues into the rate trajectories of the two countries.
The NSE Nifty 50 added 0.13% to 24,641.8, while the BSE Sensex rose 0.02% to 81,526.14.
The benchmark Nifty 50 has traded in a narrow range of less than 170 points in the three sessions this week after logging gains in the previous three weeks ended Dec. 6.
“The benchmarks have been muted in the last few sessions, reflecting caution ahead of U.S. inflation reading,” said Prashant Tapse, senior vice president of research at Mehta Equities.
The U.S. inflation data will shape the Federal Reserve’s interest rate outlook, which could impact foreign inflows into emerging markets such as India.
Meanwhile, economists expect domestic inflation to have eased in November, a Reuters poll showed. The data is due on Thursday.
Moderation in inflation may allow the Reserve Bank of India to cut interest rates in its next policy meeting in February, amid rising growth concerns, two analysts said. The RBI kept rates unchanged in its policy meeting last week.
Indian shares end flat ahead of US, domestic inflation data
Nine of the 13 major sectors rose, but gains were marginal. Banks and state-owned lenders dropped 0.35% and 0.9%, respectively.
The broader, more domestically focussed smallcaps rose 0.4% to a record high and midcaps gained 0.3%.
Both indexes advanced for the 14th straight session, their longest in eight months and in a year, respectively.
Sustained inflows from domestic and mutual fund investors into smallcaps and midcaps, driven by the prospect of outsized returns, is driving the rally, said two analysts.
Among individual stocks, non-bank lender Bajaj Finance rose 2.6% after unveiling growth strategy for fiscal 2025-2029.
D-mart stores operator Avenue Supermarts fell about 3% after Goldman Sachs lowered target price, citing weakness in revenue growth.
Online food delivery platforms Swiggy and Zomato fell 4% and 1.4% on Amazon’s plans to enter Indian quick commerce.
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