Mumbai: The BSE Sensex struggled on Wednesday morning, with Reliance Industries one of the few blue-chip outperformers, as investors grew cautious about staking out new positions ahead of Friday’s budget.
By 10:45am, the 30-share BSE index was up a scant 0.04% at 16,293.59 points, with 12 of its components gaining. The 50-share NSE index was down 0.1% at 4,867.15.
”People do not want to take any directional calls with so many events lined up this week,” said Vaibhav Sanghavi, director of Ambit Capital.
Traders were awaiting the railway budget to be presented later in the day, the expiration of monthly derivative contacts on the National Stock Exchange on Thursday and the federal budget on Friday.
Enery giant Reliance Industries, which has the highest weighting in the main index, rose 0.8%. The stock had declined 5.5% over four previous sessions.
Automakers were the biggest drag on the market after India’s top carmaker Maruti Suzuki said on Tuesday it was recalling 100,000 of its A-Star hatchbacks sold overseas and in India.
Shares in Maruti dipped in and out of negative territory in early trade on Wednesday but were up 0.5% by late morning.
“I think, people are awaiting more details on the costs and the full impact of it before they take a definitive view,” said Arun Kejriwal, director of research firm KRIS.
“It seems to be a one-off event,” he said.
Rivals Tata Motors and Mahindra and Mahindra were down 2% and 2.2% respectively.
In the broader market, gainers led losers in a ratio of 1.7:1 in a volume of 116 million shares.