Indian benchmark indices ended the June F&O expiry flat on Thursday as gains in auto and realty sectors were capped by losses in IT and metal space.
The sentiment was dampened on renewed worries of a trade dispute with the United States after US President Donald Trump called out India’s move to raise tariffs on American goods.
Meanwhile, Asian markets remained upbeat on hopes of a tentative trade truce between the United States and China.
Reuters reported that the South China Morning Post, citing sources, said Washington and Beijing were laying out an agreement that would help avert the next round of tariffs on an additional $300 billion of Chinese imports. US President Trump is expected to meet with Chinese President Xi Jinping on Saturday in the G20 summit in Osaka.
The Sensex ended 6 points lower at 39,586, while the broader Nifty50 index lost 6 points to end at 11,841. Meanwhile, in broader markets, the Nifty Midcap rose 0.5 percent, while the Nifty Smallcap index was flat.
Tata Motors, Indiabulls Housing, M&M, Bharti Infratel and Eicher Motors were among the top gainers on the Nifty50, whereas Tech Mahindra, Reliance, HCL Tech, ITC and Hindalco led the losses.
Sectoral indices ended mixed for the day. The Realty index gained the most, up 1.9 percent followed by the Nifty Auto (up 1 percent), the Nifty Fin Services (up 0.4 percent) and the Nifty Bank (up 0.2 percent). Meanwhile, the Nifty IT fell 0.7 percent, whereas, the Nifty Media and the Nifty Metal declined around 0.3 percent each.
The Nifty Realty gained nearly 2 percent led by gains in Prestige Estates, Godrej Properties, Brigade Enterprises, Sobha and Oberoi Realty up in the range of 1.8-6 percent.
Among other gainers, Coffee Day Enterprises rose 4 percent on reports that Coca-Cola Co is in talks to pick up a significant stake in Café Coffee Day.
Globally, MSCI’s broadest index of world shares was up over 0.2 percent after four days of back-to-back losses. Germany's trade-sensitive DAX led Europe's early gains with a 0.7 percent jump with the other main bourses and Wall Street futures all up between 0.2-0.6 percent.
Asia had finished strongly with China's blue-chip index closing up 1 percent and Hong Kong's Hang Seng and Japan's Nikkei ending 1.4 percent and 1.2 percent higher.