Amid continued cash crunch, broad market indices seemed to be in a consolidation mode, with investors remaining worried over the impact of demonetisation on GDP growth in coming quarters. Both 30-share index Sensex and 50-share index Nifty were trading flat in the morning trade on Thursday.
While second quarter GDP data of 7.3 percent gave some comfort to investors, most sectoral indices continued to trade with marginal losses on the back of persistent cash crunch in the system.
At 11 am, Sensex was trading 0.07 percent up at 26,671.87, while Nifty was at 8,221.35, down 0.04 percent.
Among sectors, auto, bankex, capital goods, metals and IT were trading in the red with crucial support coming from consumer facing businesses like consumer durables, FMCG and healthcare.
Shares of companies like Eicher Motors, GAIL, ONGC, Cipla and Reliance saw buying from investors with Eicher Motors leading the pack. Shares of BPCL, Asian Paints, Power Grid Corporation, Tata Motors and ICICI Bank were trading in the red in the morning trade.
India second quarter GDP grew by 7.3 percent against 7.1 percent reported in the previous quarter. While agriculture and services sector posted sound growth during this period, manufacturing growth cooled down in July-September period.
Though September quarter GDP figure was a tad higher than the first quarter, investors remained worried over the impact of continued cash crunch on the growth figures going ahead.
Meanwhile, oil prices rose more than 12 percent after key producers' club, OPEC, and Russia cut a deal to reduce output for reducing the supply glut. This provided crucial support to major Asian indices. However, analysts said this move would negatively impact India with rise in import bill.
Rupee was trading 0.06 percent lower at 68.32 per dollar in the morning trade, providing some support to IT stocks.