BENGALURU, Sept 27 (Reuters) - Indian shares stayed
rooted to two-month lows on Tuesday, with gains in IT and
consumer companies offset by losses in auto and metal stocks, as
worries over economic growth festered ahead of the central
bank's policy decision later this week.
The NSE Nifty 50 index closed flat at 17,007, while
the S&P BSE Sensex also ended mostly unchanged at
"The global markets are not completely out of the woods.
Indian markets will not be able to sustain major gains given the
macro data in the U.S., monthly derivatives expiry and the
Reserve Bank of India's monetary policy decision later this
week," said Prashanth Tapse, research analyst, Mehta Equities.
"We are in a very volatile zone given the movement in the
dollar index. Unless the index cools off, Indian markets may not
be in a positive trend."
The Nifty IT index rose nearly 1% on expectations
that services companies will benefit from the strong dollar.
The FMCG index gained 0.6% on hopes of higher
volume growth and margin recovery as prices of many key raw
materials like palm oil have cooled off, analysts said. The
index gained nearly 4% last week.
"We are in the festive season and volume growth will be
higher compared to last six months. Being a defensive sector,
the FMCG looks good," Tapse said.
Cipla and Tata Consumer were top gainers
in the Nifty 50 index, rising 3.1% and 2.2%, respectively, while
Hero MotoCorp fell the most, losing 3.1%.
Foreign institutional investors sold net 51.01 billion
Indian rupees ($625.1 million) domestic equities on Monday as
per provisional data available with the National Stock Exchange.
($1 = 81.6100 Indian rupees)
(Reporting by Nallur Sethuraman in Bengaluru; Editing by Savio