Indian shares traded flat in late morning trades as investors turned cautious ahead of inflation data based on wholesale price index for November on Friday that is likely to decide the Reserve Bank of India's monetary policy stance next week.
At 11:20 AM, the Bombay Stock Exchange's Sensex index was down 2 points and traded at 19,353 while the National Stock Exchnage's Nifty-50 index gained 4 points at 5,892.
However hopes of new stimulus steps from US Federal Reserve coupled with government efforts to pass key banking bill prevented a steep decline in stocks.
Meanwhile, global risk appetite was mixed after Fed Chairman Ben Bernanke reiterated that monetary policy won't be enough to offset damage from the "fiscal cliff."
Asian shares traded mixed on Thursday with Shanghai Composite falling 0.7% to 2,068,Hang Seng down 0.09% to 22,484, Straits Times gained 0.4% to 3,154 while Nikkei rose 1.5% to 9,728.
The MSCI Asia Pacific index outside Japan rose 0.5% to 901 in late morning trades.
Back home, auto, banks, real-estate and metal indexes rose while fast moving consumer goods sector led declines on BSE.
Among key Sensex stocks, Hindustan Unilever and ITC declined 2% and 4% respectively, Sun Pharma and Cipla fell 0.2% each. Among the gainers, Tata Motors, Hero MotoCorp gained 4.5% and 1% each, Reliance Industries was up 1% while Wipro rose 1%. In banking space, ICICI Bank gained 2% and State Bank of India rose 1%.
Hindustan Unilever (HUL) fell 2%, extending its previous day’s 2.6% fall on reports that Unilever’s Indonesian subsidiary has agreed to pay a higher royalty payment to Unilever Plc.
Tata Motors surged by 4% on reports that the company's UK subsidiary Jaguar Land Rover (JLR) reported a record 29,893 vehicles in the month of November.
Among other notable movers, NMDC is trading higher by 3% at Rs 159 after the government's offer Wednesday to sell a 10% stake in iron-ore miner has received strong response.
L&T Finance Holdings touched new high gaining 1%, while Reliance Capital gains 1.4% on hopes of clearance to the banking bill which would set the groundwork for companies to eventually gain banking licenses.
The BSE mid-cap and small-cap indices rose by nearly 0.4-0.5%.
The overall breadth is positive as 1,306 stocks have advanced while 1,046 stocks declined on the BSE.
