Sensex trading flat; HDFC falls

Reuters Market Eye - The BSE Sensex and Nifty are trading flat, paring gains from earlier in the session, dragged down by a decline in index-heavyweight Housing Development Finance Corp Ltd.

HDFC Ltd falls 1.7 percent on concern the mortgage lender will have to shed some of its holdings in HDFC Bank Ltd after India's foreign investment regulator classified the parent's holdings in the banking subsidiary as foreign investment.

The BSE Sensex is up 0.03 percent while the broader Nifty is trading 0.1 percent higher as of 2:21 p.m. after earlier hitting record highs.

Gains in public sector banking stocks and metal companies limit fall.

 

Sesa Sterlite is up 4.1 percent and Punjab National Bank is trading 2.1 percent higher on foreign inflows through exchange traded funds.

(Reporting by Himank Sharma)