By Bharath Rajeswaran
(Reuters) -India’s stock benchmarks were flat in early trade on Tuesday, pausing after two sessions of profit-taking near record highs, with analysts expecting a consolidation ahead of the monthly derivatives expiry and key U.S. data.
The Nifty 50 rose 0.14% to 25,996.85 points, while the BSE Sensex was up 0.15% at 85,030.43, as of 10:07 a.m. IST.
The benchmarks, which lost about 1% in the previous two sessions and are 1.3% below record highs, traded between gains of 0.2% and losses of 0.2% in the first hour of trade.
Six of the 16 major sectors logged losses. The broader small-caps and mid-caps were flat.
The share benchmarks are likely to move near current levels as investor sentiment is cautious due to persistent foreign selling and the delayed India-U.S. trade deal, two analysts said.
Markets await the November series’ derivatives expiry on Tuesday, as well as a U.S. inflation reading due on Wednesday.
“Market focus is on whether foreign investors roll over their short positions or opt to trim them on expiry day,” said Devarsh Vakil, head of prime research at HDFC Securities.
Among individual stocks, oil marketing companies BPCL, HPCL and Indian Oil fell about 1.5% each after Investec downgraded the shares to “sell” from “hold”, citing pressure on diesel marketing margins.
Heavyweight Reliance Industries gained 1.5% after Investec reiterated a “buy”, saying the oil-to-telecom conglomerate is well placed to benefit from the improving refining business.
LG Electronics India added 2% after Jefferies initiated coverage with a “buy” rating, citing diversified product mix, strong earnings outlook and attractive valuations.
The Indian rupee strengthened for the second consecutive session after slumping to an all-time low on Friday. Local bond yields edged lower, after the Reserve Bank of India’s governor said there is scope for further rate cuts ahead of a policy meeting next week.
(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Ronojoy Mazumdar, Nivedita Bhattacharjee and Mrigank Dhaniwala)
