India equity benchmarks flat as US trade optimism offsets IT pullback

India’s equity benchmarks traded flat on Thursday, as broad-based gains on hopes of progress in trade talks with the United States offset profit booking in information technology stocks after a recent surge.

The Nifty 50 edged down 0.05% to 24,960.15, and the BSE Sensex shed 0.06% to 81,372.78 as of 10:10 a.m. IST.

Both the benchmarks swung between 0.2% gains and losses in early trade.

The Nifty has gained 1.6% over the past six sessions, driven by multiple factors, including India’s consumption tax cuts, expectations of a Federal Reserve rate cut and improving sentiment around India-US trade negotiations.

Ten of the 16 major sectors logged gains.

The broader small-caps and mid-caps traded flat.

IT index fell 1%, with Infosys dropping 1.5% ahead of a board meeting to consider a proposal for a share buyback.

Infosys had risen 7% in the two days since the announcement.

IT index gained 5.5% over the same period. Markets have inched higher in recent sessions on favourable cues, but sustained support from IT and banking will be key for the Nifty to move towards the 25,250–25,400 range, said Ajit Mishra, senior vice president of research at Religare Broking.

However, with selling pressure emerging at higher levels, Nifty may see another round of consolidation around the 25,000 mark, according to two analysts.

GAIL jumped 3% after Nomura assumed coverage with a “buy” rating, citing earnings boost from an anticipated pipeline tariff hike by Petroleum and Natural Gas Board.

State-owned refiners BPCL, HPCL and Indian Oil Corp gained about 1.5% each after analysts at Citi reiterated a “buy” call on all three companies.

The brokerage highlighted strong earnings momentum, steady government support and attractive dividend yields.

GAIL and oil marketing companies boosted the energy and oil and gas indexes by 1% each.