Indian shares flat as TCS tumbles 6%

FILE PHOTO: A woman walks past the Bombay Stock Exchange (BSE) building in Mumbai, India, January 31, 2020. REUTERS/Francis Mascarenhas

BENGALURU (Reuters) – Indian shares were subdued early on Monday as gains in Reliance Industries were offset by weakness in IT stocks after Tata Consultancy Services reported September-quarter results.

The NSE Nifty 50 index was up 0.05% at 17,905.85, while the S&P BSE Sensex was down 0.05% at 60,005.01 by 0352 GMT.

Nifty’s IT index tumbled more than 4% with Tata Consultancy Services leading losses with a 6% drop.

The IT major topped quarterly profit estimates but analysts said there were indications of moderating deal wins and margin pressure in future quarters.

On the other hand, Reliance Industries rose 1.2% after the Mukesh Ambani-led company said it would buy Norwegian-headquartered solar panel maker REC Solar Holdings for $771 million and an up to 40% stake in India’s Sterling and Wilson Solar.

Shares of Sterling and Wilson Solar rallied 14% early on Monday.

Meanwhile, Asian shares and U.S. stock futures inched higher on Monday as China’s blue chip index rose 1%, while high oil prices kept inflation worries intact.[MKTS/GLOB]

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