Indian shares ended unchanged on Wednesday, pausing after two sessions of gains that drove indexes to near 11-month highs, as investors opted for caution ahead of quarterly results. Uncertainty also prevailed in the market as investors await the government's announcement on the next central bank governor after local media reported that the candidate's name could be out this week.
The NSE index closed down 0.02 percent at 8,519.50 after hitting an 11-month high during the trading session, while the benchmark BSE index closed up 0.03 percent at 27,815.18, after touching its highest mark since August 20, 2015. Uncertainty also prevailed in the market as investors await the government's announcement on the next central bank governor after local media reported it could come this week.
Meanwhile, soaring food prices drove headline inflation to its highest level in nearly two years in June, data released late on Tuesday showed, increasing the odds of the central bank keeping interest rates on hold next month. "Traders are booking profits as we move into the earnings season, where broad-based moves are expected to be replaced by sector-specific moves," said Anand James, chief market analyst at Geojit BNP Paribas Financial Services.
Banks were among the biggest losers, with major public sector banks dragging the Nifty Bank Index down 0.55 percent after rallying 3.6 percent in the previous two sessions. Yes Bank Ltd fell as much as 1.4 percent, Axis Bank Ltd declined up to 1.76 percent, and IndusInd Bank Ltd lost as much as 1.98 percent. Meanwhile, oil stocks rallied on reports the government had approved a 25 paise hike in kerosene prices per month until April 2017. The S&P BSE Oil and Gas Index was up 1.04 percent, with Oil and Natural Gas Corp Ltd gaining 4.85 percent and Oil India Ltd rising 3.38 percent.