Sensex, Nifty Subdued In Early Trade; IT Stocks Extend Gains

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Indian shares opened on a subdued note Wednesday as lingering concerns over the possibility of some slippage in the fiscal deficit path and rising oil prices offset investor optimism over corporate earnings. Weak cues from global markets also weighed on markets.

The benchmark BSE Sensex was marginally lower at 34,770 in early trade while the broader Nifty index was down 18 points or 0.17 percent at 10,682.

Reliance Communications dropped 1.6 percent on reports that it plans to lay a 68,000-km undersea cable to carry data across Europe and Asia.

Adani Power lost 4 percent, DCB Bank shed 2 percent and Zee Entertainment Enterprises fell 1.5 percent ahead of their quarterly results due today.

Reliance Industries declined 1.3 percent and JSW Steel was little changed after they unveiled plans to invest in West Bengal.

Nestle India shares were marginally higher after Swiss food group Nestle agreed to sell its U.S. confectionery business to Italy's Ferrero for $2.8 billion.

TCS rallied 2 percent on bagging a $690 million contract from M&G Prudential. Rivals HCL Technologies and Infosys extended Tuesday's gains to rise 1-2 percent.