Feb 1 (Reuters) - Indian benchmarks reversed gains in a special trading session on Sunday as investors assessed the government's fresh bets on the manufacturing sector with a record capital expenditure of 12.2 trillion ($133.08 billion) in the federal budget.
The Nifty 50 was down 0.14% to 25,286.1, while the BSE Sensex lost 0.02% to 82,249.39 as of 11:59 a.m. IST.
Eleven of the 16 major sectors traded lower. The broader small-caps and small-caps were down 1.8% and 0.9%.
Defence stocks erased gains and fell 2.8%, while state-owned banks dropped 3.4%.
Infrastructure stocks traded little changed. Axis Securities said the increased capex outlay was a positive for infrastructure and cement companies.
The government said it would spend a record 12.2 trillion rupees on infrastructure in the coming year.
"The higher government capex signals a strong policy focus on infrastructure development as a key driver of economic expansion," said Divam Sharma, co-founder and fund manager at Green Portfolio PMS.
Textile stocks such as Gokaldas Exports, Vardhman Textiles, KPR Mill and Arvind jumped 1% to 4% after the finance minister announced setting up of mega textile markets and a five-point plan for textile firms.
($1 = 91.6710 Indian rupees)
(Reporting by Bharath Rajeswaran and Vivek Kumar M in Bengaluru; Editing by Janane Venkataraman, Sonia Cheema and Nivedita Bhattacharjee)
By Bharath Rajeswaran and Vivek Kumar M
