Benchmark stock market indices opened flat on Wednesday, as gains in information technology (IT) stocks were balanced out by profit booking across other sectors.
As of 10.13 am, the NSE Nifty 50 was nearly flat, rising just 7.30 points to 24,146.30, while the S&P BSE Sensex saw a modest increase of 66.37 points to 79,022.40.
The IT sector showed some strength, gaining 0.6%, following data that indicated US producer prices rose less than expected in July, hinting at cooling inflation.
However, financial stocks struggled, with the Nifty Financials and private banking indices each falling 0.2%. ICICI Bank saw a drop of 1%, contributing to the sector’s weakness.
Analysts pointed to ongoing concerns about the rising cost of deposits, which could lead to further profit-taking in Indian markets given the high valuations.
Among other sectors, Hero MotoCorp fell over 4% after missing profit expectations for the June quarter, largely due to weaker average prices. Similarly, Piramal Enterprises dropped 6% following a decline in its net profit for the same period.
Overall, eight of the 13 major sectors saw gains, but the broader market, particularly small and mid-cap stocks, experienced a decline of about 0.2% each.
Investors are now looking ahead to the US consumer price data for July, which will be released after Indian market hours and could provide further direction for the markets.