Sensex and Nifty end flat, broader gains capped

The Nifty ended flat on Wednesday as cement stocks such as UltraTech Cement rose on value buying. Broader gains were capped as foreign investors turned modest sellers while caution prevailed ahead of the expiry of May derivatives.

Foreign investors sold shares worth Rs 203 crore ($34.4 million) on Tuesday, provisional exchange data showed, though aggregate net purchases totalled $11.6 million over four sessions.

Though the sums are modest, given inflows into shares this year still reaching $7.68 billion, it was seen reflecting some of the waning momentum after shares had hit a string of record highs, including most recently on March 16 when the Bharatiya Janata Party won a clear majority in the general elections.

Investors now await actual measures from the government, while caution also prevails ahead of the expiry of derivative contracts on Thursday and the Reserve Bank of India's policy review on June 3.

Hemant Kanawala, head of equity at Kotak Life Insurance, advised investors keep faith in new Prime Minister Narendra Modi.

"Have faith in the new prime minister for taking the right decisions," he told Reuters. "He has given the direction and there would be continuous monitoring of the ministerial appointments."

The Sensex rose 0.03 per cent, or 6.6 points, to end at 24,556.

The Nifty advanced 0.16 per cent, or 11.6 points, to end at 7,329.6.

Cement makers led gainers as the sector is still seen by some analysts as offering good bargains at a time of growing hopes that the new government would turn to infrastructure projects to help boost economic growth.

UltraTech Cement rose five per cent, after falling three per cent as of Tuesday since the week ended on May 16, during when the NSE gained 1.6 per cent.

Ambuja Cements rose 5.4 per cent after falling 7.1 per cent since May 16 till the previous close on profit-taking.

Shipping Corp of India surged 13.8 per cent after the company on Tuesday posted its first quarterly net profit since the July-September quarter in 2012 on improving performance in its bulk shipping and liner businesses.

ICRA jumped 17.6 per cent after global ratings agency Moody's raised its existing tender offer price to Rs 2,400 a share from Rs 2,000 a share in its continued bid to increase its stake in the domestic company.

Larsen & Toubro gained 0.7 per cent after the company said it had got orders for $480 million in Bangladesh.

But Jet Airways (India) Ltd, part-owned by Abu Dhabi's Etihad, fell 8.7 per cent after the carrier posted a record quarterly loss partly as a result of higher jet fuel expenses and a one-time charge on a unit.

Sun Pharmaceutical Industries fell 1.4 per cent after quarterly earnings at unit Taro Pharmaceutical Industries failed to beat some analyst estimates.