Indian shares ended marginally higher on Monday as gains in financials on positive corporate results offset losses in IT stocks that were down on weak sentiment after software services exporter Infosys Ltd cut its revenue outlook. The broader NSE index closed 0.15 percent higher at 8412.80 while the benchmark BSE index ended 0.18 percent firmer at 27,288.17. The Nifty IT index fell 0.88 percent, capping gains in the benchmark index.
Shares of Infosys fell 2 percent to close at their lowest level in over a month.
"Financials are up because three bank results have come out and they have been good. There is weak sentiment with regard to IT stocks as investors wait for further clarity on Trump policies and after Infosys' quarterly results that weren't very good," said Mahantesh Marilinga, senior research analyst, Finquest Securities. All eyes will be on US President-elect Donald Trump's inauguration on Friday for any clarity on his economic plans.
Infosys Ltd, India's second-biggest software services exporter, pared full-year revenue growth outlook on Friday, as it fights uncertainties in its biggest markets that could curb client spending on technology.
"IT stocks' valuations are already quite cheap and the downside is limited, but don't expect them to outperform," Marilinga said.
The Nifty IT index was down as much as 1.23 percent, with losses led by HCL Technologies which was down 1.82 percent, followed by Infosys, which fell 1.65 percent.
Among gainers, State Bank of India rose 1.12 percent, followed by HDFC bank which was 0.39 percent higher.
The Nifty Bank index was up as much as 0.47 percent, its highest since November 21, 2016. In Asia, regional share markets were hesitant, with MSCI's broadest index of Asia-Pacific shares outside Japan down 0.5 percent, while Japan's Nikkei was 0.6 percent lower and Shanghai shed 1.4 percent.
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