Sensex choppy ahead of derivatives expiry

MUMBAI (Reuters) - Indian stocks swung between minor gains and losses on Wednesday as investors avoided risky bets ahead of the expiry of January derivative contracts on Thursday and a U.S. Federal Reserve policy statement due later in the day.

Risk appetite for equities was also subdued as crude oil prices resumed their slide towards $30 a barrel amid data showing profits earned by Chinese industrial firms in December fell for a seventh straight month.

Indian markets are expected to be volatile on Thursday with the expiry of January futures and options contracts.

"The Nifty futures premium for next month is not showing a substantial increase," said Alex Mathews, head of research at Geojit BNP Paribas.

"That is a clear sign that people are not willing to carry forward positions to the next month," said Mathews, adding that there were uncertainties over China, crude oil and the budget.

The broader Nifty was 0.37 percent higher at 0747 GMT after rising as much as 0.56 percent earlier in the day.

The benchmark Sensex was 0.39 percent higher after rising as much as 0.64 percent earlier in the session.

Housing Development Finance Corp rose 0.5 percent while IDFC Bank gained 3.3 percent, ahead of their quarterly results due later in the day.

Power Grid Corp of India Ltd rose 3.4 percent and Bharti Infratel gained 4.7 percent ahead of their results.

Meanwhile, Axis Bank fell 1.7 percent on reports that the government was looking to sell some of its stake in the lender.

(Reporting by Karen Rebelo in Mumbai; Editing by Subhranshu Sahu)