Indian shares flat on profit-booking, US slowdown concerns

BENGALURU, Sept 9 (Reuters) – Indian shares were muted on Monday as concerns over the health of the U.S. economy persisted after last week’s jobs data showed a continued labor market slowdown, while analysts expect local traders to lock in profits following a recent rally.

The Nifty 50 index (.NSEI),  was flat at 24,865.8 points, while the S&P BSE Sensex (.BSESN),  held its ground at 81,218.17, as of 9:49 a.m. IST.

Both indexes dropped about 0.3% each at the open.

Nine of the 13 major sectors logged losses. Financials (.NIFTYFIN), gained 0.2% while consumer stocks (.NIFTYFMCG), added 0.5%.

The more domestically focussed small- (.NIFSMCP100),  and mid-caps (.NIFMDCP100), shed about 1.3% and 0.7%, respectively.

“The stock market has taken a bearish turn, with sentiment shifting from optimism over likely rate cuts to concerns over a potential U.S. economic slowdown,” said Prashanth Tapse, senior vice president of research at Mehta Equities.

Indian benchmark indexes dropped about 1.5% last week, coming off record-high levels hit last Monday, on fears that the United States perhaps waited too long to lower its rates.

“Friday’s weaker-than-expected jobs data has reignited fears of a recession in the U.S. and there will be caution ahead of key U.S. inflation reports later in the week and Federal Reserve’s rate decision next week,” Tapse said.

Asian markets were trading lower, with the MSCI Asia ex-Japan index (.MIAPJ0000PUS), shedding 1.4%.

Wall Street equities fell on Friday after U.S. employment increased less than expected in August.

Among individual stocks, budget airline SpiceJet (SPJT.BO), gained 5% after entering an agreement with Carlyle Aviation Management to restructure aircraft lease obligations of about $137.6 million.

Shares of Granules India (GRAN.NS), fell 3.5% after the U.S. drug regulator concluded an investigation at the pharma company’s Hyderabad facility with six observations.

Energy solutions provider Deep Industries surged 15% following an order worth 14.02 billion rupees ($167.02 million) from Oil & Natural Gas Corp (ONGC.NS).

($1 = 83.9425 Indian rupees)