REUTERS - Indian shares swung between gains and losses on Wednesday, as investors booked profits on recent outperformers, but defence stocks rose after the United States recognised the country as a "major defence partner" during Prime Minister Narendra Modi's ongoing U.S. visit.
Shares have gained about 20 percent since hitting a near two-year low on Feb. 29 on hopes over the domestic economy and corporate earnings.
Technical indicators point to more gains ahead, with the broader NSE index last month seeing its 50-day moving average cross above the 200-day average, creating a bullish trend called the "golden cross".
Analysts however warn markets will see periodic profit-taking, especially ahead of key events this month, including the U.S. Federal Reserve policy meeting next week and Britain's June 23 referendum on whether to leave the European Union.
"There is constant churn in the portfolio which is resulting in a regular amount of profit booking as seen in the market," said Deven Choksey, managing director of KR Choksey Securities.
The broader NSE index was up 0.1 percent at 8,274.6 as of 0828 GMT, while the benchmark BSE index was 0.13 percent higher at 27,044.70.
Among the top gainers, Bharti Airtel rose as much 2.6 percent after the Economic Times reported that a new spectrum usage fee for all the airwaves owned by the company would lower costs.
Defence-sector stocks, including Bharat Electronics, Astra Micro Wave Products Ltd, Reliance Defence and Engineering Ltd and Walchandnagar Industries Ltd jumped between 5.5 percent and 17.3 percent.
Some recent outperformers fell, with Asian Paints down 1.7 percent. The stock has gained 19.2 percent since April-end as of Tuesday's close.
Kotak Mahindra Bank lost 1.8 percent after rising 22.5 percent since the end-February.
(Reporting by Samantha Kareen Nair in Bengaluru; Editing by Biju Dwarakanath)
