Indian shares flat as gains in Reliance offset weakness in banks

  • Reuters
  • Stock Market News
Indian shares flat as gains in Reliance offset weakness in banks
Credit: © Reuters.

By Derek Francis

BENGALURU, Nov 13 (Reuters) - Indian shares were little changed in a choppy trading session on Friday as gains in Reliance Industries offset weakness in banks and limited losses on the main indexes.

The NSE Nifty 50 index .NSEI and the benchmark S&P BSE Sensex .BSESN were down about 0.05% at 12,685.2 and 43,333.69, respectively, by 0526 GMT. The indexes, which are on track for a second straight week of gains, had risen as much as 0.36% during the session.

Reliance RELI.NS rose as much as 2.8%, recovering from a 5% drop in the last two sessions. The oil-to-telecoms conglomerate is India's most valuable company with a market capitalization of over 13 trillion rupees ($174.19 billion) and a weightage of over 13% among the Nifty's components. Nifty banking index .NSEBANK fell 1.3% after rising more than 20% in an eight-day winning streak until Wednesday.

"To some extent banks have tried to lead revival hopes, but they need a broader-based economic recovery to come back to their pre-COVID levels," said Anand James, chief market strategist at Geojit Financial Services.

Private-sector lenders Indusind Bank INBK.NS , ICICI Bank ICBK.NS and Axis Bank AXBK.NS fell over 1.3% each.

Meanwhile, India's retail inflation was over 7% in October for a second straight month and remained above the Reserve Bank of India's (RBI) target of 2%-6%, giving the central bank little room to cut rates. the numbers were on the higher side, the uptick in inflation showed a pick up in consumer activity, Geojit's James said, adding that, historically, inflation numbers would go up during the festival season in October and November.

Among other sectors, the Nifty realty .NIFTYREAL rose about 0.9% after the government announced a new set of stimulus measures, including additional funding for real estate developers and contractors. Nifty pharma index .NIPHARM also rose about 0.9%. ($1 = 74.6320 Indian rupees)

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