Indian shares came off one-month highs to end flat on Wednesday, after a choppy session dragged by financials and oil marketing companies (OMCs).
Sentiment was also subdued on concerns that inflation worries could resurface on the back of rising crude oil prices. Brent crude futures surged more than 3 percent on Tuesday to their highest since late 2014, at $71.34 a barrel.
Investors await March retail inflation data due on Thursday for cues about the economy. Retail inflation likely eased to a five-month low in March as increases in food prices slowed once again but remained above the central bank’s medium-term target, a Reuters poll found.
Financials were the top losers with the Nifty PSU Bank index down over 2% after gaining more than 7% in the last four sessions.
OMCs slumped following reports that the government is asking these firms to absorb price hikes. Hindustan Petroleum Corp plunged over 7% intra-day, while both Bharat Petroleum Corp and Indian Oil Corp dropped over 5%.
Among global markets, Asian stocks rose modestly on Wednesday but pared early gains as caution again crept into markets over strained US-China trade ties and escalating tensions in Syria.
(with inputs from Reuters)