MUMBAI: Indian shares were trading flat on Tuesday, retreating from record highs hit earlier in the session, as gains in consumer discretionary stocks were offset by losses in energy and healthcare.
With the benchmark indexes gaining around 6 percent each last month, Indian shares have been on a prolonged record-setting run, and this according to analysts has resulted in stretched valuations.
“The markets are at all-time highs and valuations are on the higher side. Given that earnings are yet to pick up, it adds to the caution,” said Siddhartha Khemka, Head of Retail Research at Motilal Oswal Securities.
A rebound in battered Chinese stocks on Monday helped lift Asian equities, which also drew support from earnings-led gains on Wall Street in a welcome relief for investors grappling with an intensifying Sino-US trade spat.
The broader NSE index was down 0.01 percent at 11,386 as of 0700 GMT while the benchmark BSE index was 0.04 percent lower at 37,675.02.
Shares of Adani Ports Special Economic Zone fell as much 5.2 pct in their biggest intraday percentage drop since March 7 after the company reported a 9 percent drop in quarterly profit on Monday.
The Nifty Energy Index was down 0.8 percent, its lowest since Aug. 3. Market heavyweight Reliance Industries Ltd fell as much 1.3 percent.
State-run lender Syndicate Bank Ltd’s shares fell as much as 4.2 pct to 42.25 rupees, their biggest daily percentage fall in nearly three weeks. The stock is the top percentage loser on the Nifty PSU Bank index which is down 0.2pc.
Source: Brecorder
