Stocks Fall Ahead Of Inflation Data, IT Results

Indian shares swung between gains and losses before settling lower on Wednesday, as caution prevailed ahead of key corporate earnings as well as domestic and US inflation data, due later in the day.

The Nifty 50 index closed 0.28 per cent lower at 19,384.30, while the S&P BSE Sensex fell 0.34 per cent to 65,393.90.

Six of the 13 major sectoral indexes logged gains, with public sector banks rising 0.83 per cent.

The high-weightage IT fell 0.71 per cent and was the top sectoral loser, ahead of first-quarter results from Tata Consultancy Services and HCLTech, due after market hours.

Several brokerages have warned of a muted quarter for the IT sector as clients in the United States and Europe - two of the sector's largest markets - cut spending.

"From here on, any runaway rally is unlikely, especially with rising concerns over food inflation due to uneven monsoons," said Samrat Dasgupta, chief executive officer at Esquire Capital Investment Advisors.

"Advise investors to be cautious and utilise a buy-the-dip approach. The Nifty 50 has strong support near 18,900-19,100 levels, but the gains could be capped due to elevated valuations."

The Nifty 50 and Sensex have both risen over 11 per cent so far in fiscal 2024.

India's retail inflation likely snapped a four-month decline in June due to rising food prices, a Reuters poll of economists showed.

State-owned lenders Indian Bank and Union Bank rose more than 4 per cent and 1 per cent respectively, after global brokerage Investec initiated coverage with "buy", citing valuation comfort in tier-2 public sector lenders.

Online gaming firm Delta Corp tumbled over 23 per cent while Nazara Technologies and Onmobile Global lost between 1 per cent and 3.5 per cent after the government imposed a 28 per cent tax on the turnover of online gaming companies.

Asian and European equities rose over 0.7 per cent ahead of the US inflation data.