BENGALURU, Sept 8 (Reuters) - Indian shares closed flat on
Wednesday as the embattled telecom sector gave up gains after
the government did not consider relief measures, while firmer
financials offset weakness in IT stocks.
The blue-chip NSE Nifty 50 index closed down 0.05%
at 17,353.50 and the benchmark S&P BSE Sensex settled
0.05% lower at 58,250.26.
The indexes had declined as much as 0.6% as the cabinet's
decision disappointed some investors that were expecting support
measures for the cash-strapped sector.
Reversing from early gains, Bharti Airtel Ltd and
Vodafone Idea Ltd slipped 0.4% and 2.4%, respectively.
Reliance Industries, the owner of telecom operator
Reliance Jio Infocomm, fell 0.4% to snap five sessions of gains.
The market was being weighed down by profit-taking, but
banks limited losses, said Neeraj Dewan, director at Quantum
Nifty's bank index and finance index
settled up 0.82% and 0.57%, respectively.
The Nifty IT index settled down 0.78%, with Wipro
leading losses to close down 1.8%.
Agro chemicals maker BASF India dropped 2.1%.
India's antitrust watchdog on Wednesday raided local offices of
several vegetable seed companies, including that of BASF
Textile stocks Filatex, Bannari Amman Spinning
Mills and Alok Industries advanced between
5% and 12.1% after the government said it would provide
incentives for the sector.
Ratings agency Standard and Poor's said on Wednesday that
India's economic growth would remain strong in the coming
quarters, while inflation in Asia's third-largest economy was
likely to remain at elevated levels.
(Reporting by Chandini Monnappa and Rama Venkat in Bengaluru;
Editing by Shounak Dasgupta and Aditya Soni)