Indian equity markets on Monday closed flat amid volatile trade with investors awaiting key macro economic data releases, due this week, and fresh development on US-China trade deal.
The benchmark Sensex closed 0.1% higher at 40487.43 points, while Nifty gained 0.13% to 11936.95 points.
IT stocks fell on concerns that margins of these companies will be hit after the Indian currency strengthened for the fourth session to hit a one-month high. Tata Consultancy Services Ltd, HCL Technology, Tech Mahindra, and Wipro Ltd fell 0.2- 3%.
Indiabulls Housing Finance fell 5% while PNB Housing Finance declined 8% after global brokerage house Morgan Stanley assigned an underweight rating on the stock.
Vodafone Idea Ltd slumped 6% after chairman Kumar Mangalam Birla said the company may have to shut shop if there’s no relief on the statutory dues that need to be paid by January end.
Dish TV gained 8.3% as the company said it will pay most of its debt through internal accruals.
Coffee Day Enterprises Ltd fell 10% after Bloomberg reported that the its crucial Global Village Technology Park sale to New York-based private equity giant Blackstone Group Llp has hit a wall as YES Bank is reluctant to give its no-objection certificate for the RS.2,800 Crore deal, which is primarily aimed at repaying debts of Cafe Coffee Day’s associate firms and their promoters.
Investors focus on a trade deal before the 15 December deadline for a new round of US tariffs on Chinese goods. The market also awaits India’s retail inflation and factory output data on Thursday. Consumer prices probably rose 5.22% year-on-year in November compared with a 4.62% gain in October. Industrial production likely contracted 4.8% in October compared with a 4.3% contraction in September, according to a Bloomberg survey.
"We continue to maintain our cautious stance on the Indian markets considering the recent run up and stretched valuations. Going forward, market participants would keep a close watch on CPI, IIP and WPI numbers scheduled to release this week. On the global front, trade deal developments between US-China would be a key determinant in deciding the direction for Indian as well as global markets," said Ajit Mishra, VP - Research, Religare Broking Ltd.
Asian markets closed mixed with Nikkei gaining 0.33%, while Hang Seng declining 0.01%. Among European markets, FTSE 100 fell 0.2%, CAC 40 was down 0.3% and Dax declined 0.11%.