Sensex, Nifty steady; IT stocks gain

By Krishna V Kurup

(Reuters) - Indian shares held steady on Thursday as losses in energy offset gains in IT stocks such as Infosys Ltd, while investors awaited key corporate results due this week for further direction.

Broader Asian shares fell, with MSCI's broadest index of Asia-Pacific shares outside Japan down 0.3 percent, slipping further from Tuesday's 10-year peak.

The broader NSE Nifty was flat at 10,632.30 as of 0620 GMT, while the benchmark BSE Sensex was up 0.04 percent to 34,446.80.

"Investors are looking for indications from earnings due today. The commentary on the quarter is crucial; if it does not meet their expectations, the negatives will start to take on more weight," said Sunil Sharma, chief investment officer at Sanctum Wealth Management.

Rising inflation and interest rates remain a concern, he added.

India's retail inflation rate likely rose to a 17-month high in December, a Reuters poll showed, suggesting increasing pressure on the central bank to tighten monetary policy.

"There is nervousness around crude oil as well. Fundamentally, investors are looking at the impact crude (prices) will have on the margins," Sharma said.

Oil inched away from three-year highs on signs that a 13-percent rally since early December may have run its course, although a surprise drop in U.S. production and lower crude inventories offered prices some support.

Reliance Industries fell 0.2 percent and Bharat Petroleum Corp Ltd shed 0.8 percent.

Lender ICICI Bank Ltd fell 1 percent, while Axis Bank Ltd shed 1.2 percent.

However, IT stocks advanced, with Infosys rising 1 percent. The company is due to report quarterly results on Friday.

Among the gainers, GE Power India Ltd surged to a decade-high on bagging order worth about 8.18 billion rupees ($128.29 million).

(Reporting by Krishna V Kurup in Bengaluru; Editing by Amrutha Gayathri)