Indian shares flat as state-owned banks, ITC counter broad losses

By Reuters News

** India's stock benchmarks Nifty .NSEI, Sensex .BSESN trade flat, as state-owned banks gain on upbeat quarterly updates and ITC ITC.NS rises on a rating upgrade, countering broader losses

** Ten of the 16 major sectors decline; broader small-caps .NIFSMCP100 drop 0.3%, mid-caps .NIFMDCP100 rise 0.2%

** Benchmarks rose as much as 1% in intraday trade, but could not hold on to gains as selling emerged at higher levels, two traders say

** While a drop in oil prices and easing bets of US rate hike later this month aided sentiment, broader market trend remains fragile due to persistent foreign selling, says Hitesh Tailor, technical research analyst at Choice Broking

** Public sector bank index .NIFTYPSU rises 0.7%; Bank of Baroda BOB.NS and PNB PNBK.NS gain 1% and 2%, respectively, after quarterly updates indicate rise in global advances and deposits

** ITC ITC.NS climbs 2.6%, leading FMCG index .NIFTYFMCG 0.8% higher, after Citi double-upgrades to "buy" from "sell", citing a sequential rise in cigarette profitability through FY2027

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