Sensex little changed; PSU banks down

New Delhi: Indian shares were largely unchanged in lacklustre trading on Monday following heavy gains on Friday, after Moody`s Investors Service upgraded the country`s sovereign credit rating.

The broader NSE Nifty was nearly flat at 10288.85 at 0624 GMT, while the benchmark BSE Sensex was up 0.05 percent at 33,367.53. The indexes gained as much as 1 percent on Friday.

Moody`s Investors Service upgraded India`s sovereign credit rating for the first time in nearly 14 years on Friday, saying continued progress on economic and institutional reforms would boost the country`s growth potential.

"There will be no major correction in the next month or so," said R.K. Gupta, managing director at Taurus Asset Management.

"Markets will remain in 10,000-10,400 levels until the corporate tax filings come out in mid-December. That`ll give a clearer indicator on how the companies are actually performing."

Indian shares also tracked their subdued Asian peers after uncertainties clouding a U.S. tax-overhaul bill saw a retreat on Wall Street on Friday. MSCI`s broadest index of Asia-Pacific shares outside Japan extended losses. 

The Nifty PSU Bank index fell 0.85 percent after surging in the previous two sessions, including the 3.22 percent gain on Thursday.

Among the gainers, Biocon Ltd rose as much as 6.4 percent after the company`s aseptic drug product facility got Establishment Inspection Report with voluntary action by the U.S. Food and Drug Administration.

Shares of Strides Shasun Ltd climbed as much as 4.5 percent after the pharma company agreed to sell its India brand business to Eris Lifesciences Ltd on Saturday. Eris gained 4.7 percent.