Indian shares flat as slide in IT stocks offsets Fed optimism

The Bombay Stock Exchange building is seen from a facade in Mumbai, India, May 16, 2018. REUTERS/Francis Mascarenhas/FILE PHOTO

Indian shares were flat on Friday as a 3 percent tumble in IT stocks due to sector bellwether Accenture's revenue warning offset optimism around US Federal Reserve rate cuts.

The blue-chip NSE Nifty 50 index was mostly flat at 22,032.90, while the BSE Sensex added 0.06 percent to 72,677.82, as of 10:17 am IST.

On Thursday, Accenture highlighted tightening client budgets and cut revenue growth forecast for fiscal 2024 by 100-200 basis points, suggesting a weak demand outlook.

The IT index was the top sectoral loser, with Wipro, Tata Consultancy Services, HCLTech, LTIMindtree and Infosys falling between 2.3 percent and 4.5 percent. The IT stocks were also the top five Nifty 50 losers.

Barring IT, all the other 12 major sectors gained, helped by optimism from the Fed maintaining its outlook for rate cuts in 2024.

Global market outlook remains bullish as major indices hit record highs, with the US Fed predicting three rate cuts this year, said Prashanth Tapse, Senior VP (Research), Mehta Equities.

Realty stocks rose 1.3 percent, led by a 5 percent jump in Prestige Estates Projects on a land acquisition for a township project in the national capital region.

Sarda Energy & Minerals jumped 12 percent after its subsidiary received a letter of intent for a licence for an iron ore block in Maharashtra.

Metro Brands climbed 4 percent after Goldman Sachs initiated coverage of the footwear maker's stock with a "buy" rating at a Street-high price target of 1,450 rupees.