By Bharath Rajeswaran
(Reuters) -India’s stock benchmarks were flat on Thursday as it paused after a three-session gain of 1.5%, with investors awaiting election results for the politically significant northern state of Bihar, which could have implications for government policy.
The Nifty 50 rose 0.08% to 25,895.5, while the BSE Sensex added 0.08% to 84,534.21 as of 10:14 a.m. IST.
Eight of the 16 major sectors logged gains. The broader small-caps and mid-caps rose 0.2% each.
Cooling domestic inflation and easing trade worries have kept the market construct positive, while the end of the U.S. government shutdown moved global investors to focus on delayed U.S. economic data to gauge the rates outlook.
However, domestic equities may only see marginal moves on the day, consolidating near current levels ahead of the Bihar election results on Friday, two analysts said.
Exit polls have shown that the ruling National Democratic Alliance is on track to retain power.
A surprise loss could trigger a 5%-7% correction in Indian markets as it will impact government stability and predictability in policymaking, said InCred Equities.
“Investor sentiment remains cautiously optimistic with partial profit booking likely to offset any dip-buying,” said Amruta Shinde, analyst at Choice Broking.
Among stocks, Tata Steel gained 2% after reporting a four-fold jump in second-quarter profit on strong demand in key markets.
Asian Paints jumped 3.2%, after gaining 4% in the previous session on reporting 43% rise in profit aided by domestic volume growth for decorative paints.
Digital beauty and personal care company Honasa Consumer jumped 5.8% after reporting a profit in the September quarter compared to a year-ago loss.
Auto company Ashok Leyland gained 4.6% after reporting a better-than-expected profit in the second quarter.
On the flip side, infrastructure firm KNR Constructions and shipbuilder Cochin Shipyard lost 3.5% each after posting subdued quarterly earnings.
(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Sumana Nandy Ronojoy Mazumdar and Harikrishnan Nair)
