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Sensex, Nifty flat; state-run banks fall

Reuters 

By Krishna V Kurup

(Reuters) - India's benchmark index scaled a new peak on Friday before trading flat as hit a five-month high in June and stayed above the central bank's target for the eighth straight month, raising chances of a rate hike.

India's rose 5 percent in June, but was below market expectations, according to a poll. June was the eighth straight month in which inflation was higher than the Reserve of India's medium-term target of 4 percent.

The broader index was flat at 11,024.10 as of 0632 GMT, and was set to end the week 2.4 percent higher.

The index inched up 0.14 percent to 36,600.77. It briefly hit a fresh high of 36,740.07 in early trade and was on track to end the week 2.7 percent higher. The index had hit a high of 36,699.53 on Thursday.

"The market is grappling with rising core inflation. While the recent drop in crude will help, the likelihood of a rate hike has clearly risen, and that is compressing spreads and margins for financials, particularly those with challenged balance sheets," said Sunil Sharma, at

took a hit, with the Nifty PSU index dropping as much as 2.5 percent. of Baroda Ltd fell 3.8 percent while slipped 1.6 percent.

Shares of fell as much as 3 percent after it approved a buyback proposal on Thursday.

Meanwhile, an uptick in pushed higher, such as which gained 1.6 percent.

Infosys Ltd, which is due to report results later in the day, gained 1.8 percent.

Meanwhile, Asian markets took a breather from concerns around escalating U.S.-trade war, with MSCI's broadest index of shares outside up 0.56 percent.

(Reporting by Krishna V in Bengaluru; Editing by Vyas Mohan)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, July 13 2018. 12:53 IST
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