MUMBAI (Reuters) - Indian stock markets swung between gains and losses on Thursday as some sectors such as banks recovered from recent losses although sentiment remained weak as oil prices continued to fall, hitting Asian markets.
International benchmark Brent was down 30 cents at $27.58, after hitting its lowest since 2003 in the previous session, over concerns that a weakening global economy would hit demand at a time of oversupply.
Still, domestic managers are optimistic that India's economy is relatively better placed to withstand any global market shocks, and believe investors would return to domestic equity markets.
"This is would be the best time to shift into equity as an asset class from a long-term perspective," said Arun Gopalan, vice president of research at brokerage firm Systematix Shares and Stocks.
The broader Nifty fell as much as 0.81 percent to trade close to the 20-month low touched on Wednesday.
The benchmark BSE Sensex fell as much as 0.83 percent.
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As of 2.15 p.m., the NSE Index was down 0.04 percent, while the BSE Index was lower 0.1 percent.
Meanwhile, banking stocks that took a beating in the previous session gained. ICICI Bank was up 1.2 percent, while Axis Bank rose 3.5 percent despite recognising higher bad loans in the quarter. Several brokerages however, retained their "buy" rating on the stock, citing attractive valuations.
Auto and energy stocks were the biggest drag. Index heavyweight Reliance Industries fell 2.3 percent, adding to its 3.7 percent decline in the previous session.
Tata Motors fell 5.2 percent on worries a slowdown in China would hurt its luxury car sales, while Maruti Suzuki India dropped 3.5 percent.
(Reporting by Karen Rebelo; Editing by Subhranshu Sahu)