Benign reaction to UK poll verdict; Sensex, Nifty trade flat in noon deals

The benchmark indices continued to trade flat with a negative bias as index heavyweight Infosys slipped following a report its founders were preparing to exit the IT bellwether. On the global front, UK poll verdict, which left no single party with a clear claim to power, also hurt the sentiment.   

At 1:00 pm, the S&P BSE Sensex was trading at 31,181, down 32 points, while the broader Nifty50 was ruling at 9,638, down 8 points. 

In the broader market, the S&P BSE Midcap was little changed, while the S&P BSE Smallcap indices outperformed to gain 0.5%. 

The breadth, indicating the overall health of the market, was positive. On the BSE, 1,223 shares rose and 1,193 shares fell. A total of 123 shares were unchanged.

Infosys dropped nearly 4% in the morning trade, but pared some losses after the company issued clarification with regard to reports in the media speculating on plans of stake sale by the promoters.

“The reports in the media are speculating on plans of stake sale by the promoters. This speculation has already been categorically denied by the promoters”, Infosys said on clarification of the news report.

Reliance Communications continued its slide, falling as much as 3.2%. The company on Wednesday pushed back against Moody's and Fitch, disagreeing with the ratings agencies' downgrade.  

Among gainers, Natco Pharma hit a new high of Rs 1,054, up 3%, extending its 15% gains of the last eight trading sessions after the company registered a nearly three-fold growth in consolidated net profit at Rs 176 crore in Q4FY17 against Rs 63 crore posted in the corresponding quarter of the previous year.

Shares of state-owned electric utilities companies such as NHPC and SJVN rallied more than 5% each on reports that the government has decided to provide a Rs 16,000-crore bailout package to the hydropower sector, drowning under a spate of stalled and stressed projects.

Meanwhile, global market sentiment took a hit on the prospects of a hung parliament after British Prime Minister Theresa May failed to win an outright majority in the British elections.

The shock outcome saw the pound shed 2%, but Japan's Nikkei added 0.5% and MSCI's broadest index of Asia-Pacific shares outside Japan were all but flat.