Nifty, Sensex nearly flat in volatile trade, U.S. recession fears hurt

Indian shares were largely unchanged in volatile trading on Wednesday, in line with broader Asia, as worries about a global recession kept investors away from making fresh bets




The broader NSE Nifty was up 0.01% at 11,108.15 as of 0403 GMT, while the benchmark BSE Sensex was 0.01% lower at 37,637.63.

Regional markets across Asia eked out minor gains, as higher Wall Street futures provided some relief after an overnight U.S. selloff, though deeper worries about the global economy and trade kept a lid on sentiment.

Meanwhile, domestic investors awaited clarity on what steps the Indian government would take to revive an industry-wide slowdown.

"Markets have adequately discounted the positive triggers in the last three sessions and now await fresh cues," said Deepak Jasani, senior vice-president at HDFC Securities.

"Currently, we have a negative trigger from the U.S, there is no major panic, but domestic markets will wait for fresh major development rather than selling off sharply."

Indian markets have gained on the back of the government's move to scrap a recently announced tax surcharge on foreign and domestic equity investors, speed up capital infusion to state-run banks and on expectations of additional stimulus supported by a huge dividend from the Reserve Bank of India.

Shares of major automaker Tata Motors Ltd gained as much as 3.03%. China on Tuesday said it will ease restrictions on car purchases to help boost consumption.

IDBI Bank Ltd's shares plunged as much as 9.3%. Rating firm S&P Global on Tuesday placed the bank's rating on 'credit watch negative' for breaching its regulatory capital requirement.

The Nifty metals index fell 1.55%, with shares of Vedanta Ltd declining as much as 1.45%. On Tuesday, Zambia's High Court suspended hearings on the winding up of the miner's local business until the Court of Appeal rules on the lower court's refusal to let the matter go to arbitration.

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