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Markets pared early gains and traded on a flat note in late noon deals as investors booked profits. The Sensex after touching a high of 20,326 the index erased gains and was up just 35 points at 20,248. Nifty was up 26 points at 6,173.
This follow's Wednesdays smart 2.5% rally - its biggest single-day rise in almost 18 months on growing optimism that the Reserve Bank of India (RBI) will slash key rates in the upcoming policy review in June.
Asian markets ended mixed. Japan's Nikkei stock average fell on Thursday, reversing from a fresh 5-1/2-year high earlier in the session, after banks offered downbeat earnings guidance and investors took profits in the face of doubts prompted by the breakneck speed of recent rises. The market was also dented by weak company capital spending by over the March quarter. Meanwhile, Shanghai Composite added 1.2% to 2252.
Foreign institutional investors (FIIs) bought shares worth a net Rs 1646.95 crore on Wednesday.
Broader markets back home in India, rose in line with the Sensex. BSE mid-cap index outperformed with half per cent gains at 6,600. Small-caps were up 0.1% at 6,185.
Realty index rose for the second straight day on expectations that the RBI may further cut policy rates to perk up economic growth after the latest data showed a sharp fall in wholesale price inflation in April 2013. The index was up 3% at 2,014.
Oil & gas index surged 1.5%, followed by healthcare, bankex and capital goods indices. However, selling pressure was noticed in FMCG and IT shares. BSE FMCG index was down 1.3% at 6,664.
In the Sensex pack - Cipla and Dr Reddy's added 3% each. Market heavyweight - Reliance added 2.5% at Rs 840. Banking shares were also in green. SBI and ICICI Bank advanced 1.5% each, followed by Hindalco and Tata Steel.
Bajaj Auto, India's second biggest two-wheeler manufacturer, today reported a 0.9% dip in net profit at Rs 765 crore for the quarter ended March 31, 2013 as against Rs 772 crore posted in the same quarter a year earlier. Shares of Bajaj Auto were down 0.2% at Rs 1,818.
Tata Motors, which reported 7.02% fall in its global sales for last month at 81,241 units on Wednesday, was down 1% at Rs 305. The major laggards in the index were ITC and Infosys - down 1-2% each.
BSE market breadth was neutral. Out of 2,067 stocks traded, 1,021 shares declined while 932 shares advanced.
