Indian stocks muted as Reliance, tech stocks counter auto losses

Indian stocks muted as Reliance, tech stocks counter auto losses

A man speaks on his mobile phone past a new brand identity for Nifty Indices at the National Stock Exchange (NSE) building in Mumbai, India, May 28, 2019. REUTERS/Francis Mascarenhas

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BENGALURU, June 2 (Reuters) – Indian stocks were flat on Thursday as losses in auto stocks were offset by gains in Reliance Industries and tech firm Tata Consultancy Services, as global investor sentiment soured on concerns over high inflation and the risk of a US recession .

The NSE Nifty 50 Index (.NSEI) rose 0.06% to 16,532.35 at 0518 GMT and the S&P BSE Sensex (.BSESN) rose 0.07% to 55,415.68.

In the previous session, both indices have fluctuated between gains and losses for most of the day, moving slightly lower as pharma and technology stocks fell.

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“We’re seeing a kind of breather and selective purchasing,” said Ajit Mishra, vice president of research at Religare Broking.

“Global inflation concerns remain and until significant developments are in place, we will continue to see moderate movement in domestic markets.”

Asian stocks fell as investors worried about uncertainty caused by the pace of rate hikes by the US Federal Reserve, the impact of the war between Russia and Ukraine and supply chain constraints exacerbated by strict COVID-19 restrictions in China.

In domestic trade, automaker Hero MotoCorp (HROM.NS) fell 3.6% and was the biggest loser on the Nifty 50 index. This pushed the Nifty auto sub-index (.NIFTYAUTO) 0.43% lower.

Index heavyweights Tata Consultancy Services (TCS.NS) and Reliance Industries (RELI.NS) supported gains on the Nifty 50 index, rising more than 2% each.

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

IT stocks (.NIFTYIT) posted two consecutive loss sessions, rising more than 1%.

Financial services firm Religare Enterprises (RELG.NS) rose 11.9% after it said lenders of its debt-ridden unit, Religare Finvest, had agreed in principle to consider a one-time settlement offer.

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Reporting by Chandini Monnappa in Bengaluru; Editing by Shailesh Kuber

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