September 24, 2019 / 4:58 AM / 2 months ago

Indian shares little changed; IT stocks gain

* NSE, BSE indexes little changed

* Nifty IT index up 1.48%

* NSE Bank index falls 1%

By Derek Francis

BENGALURU, Sept 24 (Reuters) - Indian shares were nearly flat on Tuesday, swinging between gains and losses, as investors hoped for further stimulus from the government following a surprise corporate tax cut last week.

The broader NSE index was little changed at 11,599.80 as of 0430 GMT, while the benchmark BSE index rose 0.06% at 39,111.31.

Finance minister Nirmala Sitharaman on Friday announced a reduction in the effective corporate tax rate to around 25% from 30% and scrapped the minimum alternative tax for domestic companies, which led to a two-day rally in equity markets.

“Apart from what has already been announced, the market is now gauging what will be announced next,” said Anand James, chief market strategist, Geojit Financial Services, Mumbai.

“There is lingering optimism that Friday’s announcement could be followed up with something else too, which is why there is some volatility.”

IT stocks led gains as the index gained 1.48%. Heavyweights Infosys rose 2.25%, while Tata Consultancy Services was up 1.52%.

Reliance Industries, one of India's most valuable companies, added 2.85% in the session after a newspaper reported here that the company would get on a spending spree after reducing its debt.

Maruti Suzuki rose 1.71% after Reuters reported the company’s forecast for higher sales in September.

Meanwhile, banks were the top drags for the day, as the Nifty banking index, which tracks both state-owned and private-sector lenders, falling about 1%.

Indian Oil Corp dropped 2.24% and was among the top blue-chip losers for the day. (Reporting by Derek Francis in Bengaluru; Editing by Rashmi Aich)

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