Sensex, Nifty Remain Rangebound, Dr Reddy's Lab Jumps 4%

Indian shares traded flat on Thursday tracking Asian peers ahead of a slew of global events including the European Central Bank's policy meeting, U.K. elections and congressional testimony from ex-FBI director James Comey.

However, pharma shares gained pushing the pharma sub-index of NSE over 2 per cent higher. Dr Reddy's Lab was the top gainer in Nifty, up 4.2 per cent followed by Sun Pharma, which surged 3.46 per cent. Cipla and Aurobindo Pharma also gained over 2 per cent each.

Banking shares such as HDFC Bank also gained, after the Reserve Bank of India sharply cut its inflation projections and delivered a less hawkish policy statement, which raised expectations of potential rate cuts.

"Global equity markets are awaiting for the outcome of the three events and their impact on the risks and demand," said Deepak Jasani, head-retail research, HDFC Securities.

The broader NSE Nifty was down 0.10 percent at 9,653.45 as of 12:30 pm, and the benchmark BSE Sensex was 0.14 percent lower at 31,227.68.

IT stocks fell and the Nifty IT index was down 1.46 percent. The index has risen nearly 3 percent this year, as of Wednesday's close.

Shares of Reliance Communications continued their slide, after the embattled mobile carrier pushed back against Moody's and Fitch, disagreeing with their rating downgrades earlier on Wednesday. Shares fell as much as 2.8 percent to their lowest in over a week.

Petronet LNG shares fell as much as 3.4 percent to their lowest in over two weeks after GDF International sold its entire 10 percent stake of 75 million shares, raising Rs 3,150 crore, according to IFR.