Sensex, Nifty little changed; tech stocks fall after TCS results

MUMBAI (Reuters) – The BSE Sensex and Nifty were little changed on Friday after posting their biggest daily gain in eight months in the previous session as gains in foreign infrastructure stocks such as Larsen & Toubro (LART.NS) were offset by falls in technology stocks while banks declined on profit-taking.

Gains were also capped on weak cues across global markets after Switzerland’s unexpected move to abandon its currency cap jolted markets already roiled by plunging commodities prices.

Broader sentiment remained positive with overseas investors buying Indian index futures and options worth 74.96 billion rupees ($ 1.2 billion) and cash shares worth 17.38 billion rupees after the Reserve Bank of India unexpectedly cut rates by 25 basis points on Thursday.

“Markets took a steep jump yesterday and it’s settling down. Macro environment has already showing the direction. It will take some more time for individual companies to start perform. But the sentiment is bullish and people want to buy into this market,” said Deven Choksey, managing director, KR Choksey Securities.

The benchmark Sensex was down 0.01 percent at 28,073.14, while the broader Nifty fell 0.05 percent to 8,490.10.

Infrastructure shares gained with Larsen & Toubro adding 1.5 percent as the rate cut is expected to lower borrowing costs and help growth. Bharat Heavy Electricals Ltd (BHEL.NS) gained 1.1 percent.

However, technology stocks fell with Tata Consultancy Services (TCS.NS) down 1.6 percent after the company’s December-quarter revenue growth lagged estimates.

Among other losers, banking stocks dropped on profit-taking after spectacular gains in the previous session.

State Bank of India was down 1.8 percent after gaining 5.1 percent in the previous session. ICICI Bank (ICBK.NS) was lower 0.4 percent after adding 4.7 percent on Thursday.

(Reporting by Indulal PM; Editing by Subhranshu Sahu)

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