By Bharath Rajeswaran
(Reuters) -India’s equity benchmarks traded flat on Wednesday, following four straight sessions of gains, as investors awaited the U.S. Federal Reserve’s Jackson Hole symposium due later this week.
The Nifty 50 was up 0.05% at 24,994.5 points, and the BSE Sensex rose 0.08% to 81,709.16 as of 10:22 a.m. IST.
Six of the 16 major sectors declined, with financials falling 0.5%. The broader small- and mid-cap indices rose 0.2% each.
IT companies, which earn a significant share of their revenue from the U.S., rose 1% ahead of the Fed’s annual symposium in Jackson Hole, Wyoming, on August 21-23.
Most investors expect a 25-basis-point Fed rate cut next month. A rate cut in the U.S. could support economic growth and aid a revival in client spending, boosting the IT sector.
The Nifty 50 had risen for four sessions before Wednesday, adding 2% on the back of proposed GST reforms and S&P’s upgrade of India’s sovereign outlook.
The rally underscores resilient investor sentiment underpinned by policy tailwinds, said Ajit Mishra, senior vice president of research at Religare Broking.
Still, global developments ranging from Ukraine peace talks to trade negotiations and the Fed commentary could cap near-term momentum, Mishra said.
Geopolitical concerns lingered after U.S. President Donald Trump said he hoped Russia’s Vladimir Putin would move toward ending the war in Ukraine, but conceded Moscow may resist a deal.
Trump also signalled possible U.S. air support for Ukraine, highlighting the uncertainty over peace prospects.
Gaming firms came under pressure on Wednesday after Reuters reported India planned to ban online money-based games. Nazara Tech tumbled 6.5% and Delta Corp slipped 1%.
Bharti Airtel rose 2% after discontinuing its entry-level data plan.
Hindustan Aeronautics gained 2% on reports that the government has approved a 620 billion rupee fighter jet order.
(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Sumana Nandy and Janane Venkatraman)
