Mumbai: Indian shares turned negative on Thursday afternoon, with Larsen & Toubro and ITC leading the losses, after the food price index rose 17.40% in the 12 months to 16 January.
Trade was also choppy ahead of expiry of derivatives contracts on the National Stock Exchange, dealers said.
At 12:39pm, the 30-share BSE index was down 0.34% at 16,234.53 points. The 50-share NSE index was down 0.1% at 4,848.45.
Markets rose more than 1% in the morning, trimming some of their 7.7% fall over the past six sessions, as Asian and US markets rose on the US Federal Reserve’s cautious confidence about a recovery.
Software companies led the gains, after the recent sharp fall. The sector index rose 1.7% after declining 6.7% in four previous sessions.
IT bellwether Infosys Technologies and Tata Consultancy were up 1.5%, each while Wipro climbed 2.5%.
At 10:01am, the 30-share BSE Index was up 1.02% at 16,455.19, with 27 components gaining. The 50-share NSE index .NSEI was up 1.1% at 4,903.90.
“It is just a bounce-back after the fall we saw in last few sessions,” said Rajen Shah, chief investment officer at Angel Broking.
“It seems like FIIs (foreign institutional investors) had been booking profits after the rally in 2009,” he said, adding the recent decline was healthy.
The benchmark rallied 81% in 2009, powered by net foreign fund inflows of more than $17 billion.
Energy giant Reliance Industries which has the highest weighting on the Sensex, was up 1.1% at 1,037.50 rupees. The stock is down 4.7% so far in 2010.
Largest-listed property firm DLF climbed 2.2% after its December quarter consolidated net profit rose form the September quarter, suggesting a recovery in the sector was gaining momentum.
Tata Steel, the world’s eighth-largest steel maker by output, was up 2.25% at Rs571. It is forecast to report later on Thursday a standalone net profit of Rs1,000 crore on net sales of Rs5,830 crore a Reuters poll showed.
In the broader market, gainers led losers in a ratio of 1.8:1 in a volume of 84 million shares.