Stocks remain tepid as investors play it safe

Mumbai: Indian stocks were little changed, erasing earlier gains and losses, as investors weighed the risk of budget deficits in Europe hindering a global economic recovery and derailing domestic spending.

Larsen & Toubro Ltd., India's largest engineering company, added 1 per cent. Hindustan Unilever Ltd., the biggest household products maker, rose the most in four months. Wipro Ltd., the No 3 software services exporter, fell 1.8 per cent.

"We are focused on the domestic consumption story, where consumers aren't bothered about what's happening in Europe," said Anand Shah, head of equities at Canara Robeco Asset Management Ltd. in Mumbai, who helps manage the equivalent of $250 million (Dh919.5 million) in stocks. He declined to name any specific shares. "We are keeping away from companies that were beneficiaries of global liquidity."

The Bombay Stock Exchange's Sensitive Index, or Sensex, rose 19.96, or 0.1 per cent, to 15,935.61 after swinging between gains and losses at least 15 times. The gauge has lost 10 per cent since a January 6 peak, a drop that defines a correction.

The S&P CNX Nifty Index on the National Stock Exchange added 0.1 per cent to 4,760.40. The BSE 200 Index advanced 0.1 per cent to 2,021.64.

Larsen & Toubro advanced 1 per cent to Rs1,444.45 (Dh112.81). Hindustan Unilever rose 2.4 per cent to Rs236.5, the biggest gain since October 8. Asia's third-largest economy will probably expand 7.2 per cent in the year ending March 31.