Indices erase gains to end flat but nifty holds 9,900; auto, banks drag

Indices erase gains to end flat but Nifty holds 9,900; auto, banks drag

STOCK MARKET - Benchmark indices pared gains to end flat on Thursday dragged by losses mainly in the banking and auto stocks. Index heavyweights Infosys and Coal India however, provided some relief to the investors, leading the gains on the fromtline indices.

Shares of Infosys, India's No. 2 software services exporter, rose 4.5% after the company said on Wednesday its board

would consider a proposal to buy back shares at a meeting later this month.

Investors also took cues from Reserve Bank of India's minutes of August 02 meeting. The MPC members warned inflation could start accelerating later this year, while noting the focus should be on ensuring banks cut their lending rates further: despite the RBI rate cut, none of the major lenders have lowered the cost of loans.

Sentiment was also upbeat across global markets with Asian shares advancing as tensions between the US and North Korea came off the boil, although the Federal Reserve's concerns about weak US inflation weighed on the dollar.

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