MUMBAI (Reuters) - Indian stocks swung between small gains and losses on Thursday, as December derivatives contracts headed towards a close, but were on track to post their first yearly decline since 2011.
The Nifty and Sensex were set to chalk up losses of between 4.5 percent and 5.5 percent for 2015 after three consecutive years of gains.
Analysts however feel there have been several positives for Indian equities despite the decline in the frontline indexes.
Local fund managers, flush with cash from strong mutual fund inflows this year, have used every dip in the market to buy more stocks.
"There is a revival of confidence in the market. Despite the market not remaining on the higher side, local investors have been pouring money into the market," said Deven Choksey, managing director at KR Choksey Securities.
Revival in corporate earnings, a stable monsoon after two successive drought years and progress on tax reforms will be key domestic triggers for the markets in 2016.
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The Nifty was 0.15 percent higher while the Sensex gained marginally to trade up 0.11 percent at 12:55 p.m. on Thursday.
Gains in financial and IT stocks marginally edged out losses in consumer, industrials and healthcare shares.
Cadila Healthcare fell as much as 17 percent after the drugmaker said it received a U.S. Food and Drug Administration warning for violating manufacturing standards at two of its production facilities.
Jet Airways rose more than 5 percent while Godrej Consumer Products Ltd gained more than 2 percent after they were included in the NSE derivatives markets.
(Reporting by Karen Rebelo in Mumbai; Editing by Biju Dwarakanath)