Indian shares settle higher: Indian shares witnessed a mixed trading session on Thursday, initially wavering before closing with gains, buoyed by positive movements in Reliance Industries and financial stocks. 

Investors remained focused on impending US and domestic economic indicators.

The NSE Nifty 50 edged up by 0.14 per cent to reach 21,982.80, while the BSE Sensex advanced by 0.27 per cent to close at 72,500.30. Both indices recorded approximately a 1 per cent increase throughout February.

Throughout the trading day, market benchmarks fluctuated between modest gains and losses, eventually edging higher in the final half-hour of trading, coinciding with the expiry of the monthly derivatives for February.

The Nifty 50 has maintained a consolidation phase near the 22,000 level over the past 11 sessions, consistently closing within the range of 22,212.70 to 21,910.75 since February 15.

Reliance Industries saw a 0.67 per cent uptick following its merger announcement with Walt Disney, a move set to create an $8.5 billion entertainment conglomerate. 

Financial stocks, particularly heavyweight players, experienced a 0.33 per cent increase, with state-owned banks witnessing a stronger surge of 1.3 per cent, attributed to perceived valuation comfort within the segment.

In the broader market, small and mid-cap stocks, which are more domestically oriented, rebounded by 0.64 per cent and 0.51 per cent, respectively, recovering from an initial 1 per cent decline earlier in the session. 

The rebound followed a 2 per cent drop the previous day, triggered by concerns regarding fund inflows into the segment. 

Reports indicated that SEBI regulators advised fund managers to consider limiting one-off investments into equity mutual funds focused on small and mid-cap stocks.

Mukesh Kochar, the national head of wealth at AUM Capital, deemed the regulatory move prudent, particularly in light of the exuberant rally witnessed in small and mid-cap stocks over the past year, outperforming the Nifty 50 by crucial margins.

Investor attention remained fixed on the forthcoming US inflation data, expected after the market's close, which could impact the Federal Reserve's future interest rate decisions. 

The data release follows a notable retreat in early expectations for rate cuts. Additionally, investors awaited India's economic growth figures, anticipated to reveal a moderated growth rate of 6.6 per cent for the October-December quarter.

(With Reuters Inputs)