)
The annual wholesale price inflation eased more than expected to 6.62% in January, government data showed on Thursday. The reading for November was unchanged at 7.24%.
By 11:35, Sensex has dipped 11 points at 19,690, and the Nifty down 1 point at 5,932 levels.
On the global front, stocks drifted in light volume on Wednesday, ending little changed, as investors remained cautious after the S&P 500 index briefly hit its highest intraday level since November 2007.
The Dow Jones industrial average fell 0.26 percent, to 13,983, the S&P 500 gained 0.06 percent, to 1,520 and the Nasdaq Composite added 0.33 percent, to 3,197.
Asian shares steadied as investors awaited the G20 meeting of finance and central bank officials over the weekend for clues to their views about global growth and the role currencies play in the economies of individual member countries.
Markets in China and Taiwan remain shut for the Lunar New Year holiday but Hong Kong resumes trading on Thursday.
Back home, BSE Metal and IT indices have surged by almost 1% followed by counters like Oil & Gas, Realty, PSU and Banks, all gaining marginally. However, BSE Auto, Healthcare, Consumer Durable, Capital Goods and Power indices are down by almost 1% each.
Shares of mobile phone companies are under pressure on the bourses in late morning deals on reports that the government has demanding additional revenue share for spectrum usage.
Among the individual stocks, Reliance Communications has tanked 7% to Rs 65 on the Bombay Stock Exchange, followed by Idea Celluar (down 4.5% at Rs 105) and Bharti Airtel (down 4% at Rs 330).
Tata Motors is trading lower by 2.3% at Rs 298 ahead of the third quarter results which are due later in the day today.
Shares in software service exporter Wipro Ltd fell as much as 2.2% while power equipment maker Siemens Ltd retreated on Thursday after India Index Services & Products Ltd said both companies would be removed from the Nifty on April 1.
The market breadth in BSE remains weak with 1,547 shares declining and 788 shares advancing.
