Indian shares snapped a four-session rally on Thursday, as an overnight jump in oil prices hit trading sentiment, while investors awaited technology giant Tata Consultancy Services' results before making fresh bets.
Oil prices jumped about 5 percent on Wednesday as U.S.-China trade talks raised hopes of easing tensions between the world's top two economies, along with OPEC-led crude output cuts also providing support. India is the world's third biggest oil importer and spike in prices put pressure regionally.
The broader NSE index was down 0.24 pct at 10,828.80, while the benchmark BSE index was trading 0.16 percent lower at 36,154.16, as of 0548 GMT.
"Off late, oil has been an important driver in nudging the markets higher or lower. This is causing volatility," said Anita Gandhi, whole-time director at Arihant Capital Markets, Mumbai.
"Broader market sentiment remains positive except that investors are now looking forward to the outcome of results."
TCS shares were trading flat, while those of Bandhan Bank were up as much as 1.86 percent. Both the companies are due to report their quarterly results later in the day.
Yes Bank Ltd shares were up as much as 1.31 percent, after the private sector bank said on Wednesday it had finalised potential candidates for the position of chief executive officer, but did not disclose names.
"Markets were expecting names from the bank, but deferment by one day is not seeming to have too much of an effect as markets will take time to understand who is coming," Gandhi added.
Gains in IT stocks were outweighed by losses in financial stocks on the Nifty index.
Infosys Ltd's stock gained for a second straight session, rising as much as 0.87 percent, after the company on Tuesday said it will consider a share buyback and a special dividend on Friday when it is due to report results.
Shares of Indusind Bank Ltd were down as much as 2.98 percent, posting their biggest intrady loss since Dec 11.