Mumbai: After trading in 40 points range, the 50-share NSE Nifty closed flat on Wednesday ahead of expiry of May derivative contracts on Thursday but strong buying action was back in broader space after a two-day fall. The Sensex was up 6.58 points to close at 24556.09 and the Nifty gained 11.65 points to 7329.65 while the BSE Midcap and Smallcap indices advanced 0.4 percent and 1.63 percent, respectively.
The consolidation may continue till the expiry and RBI policy due next week, say experts. Deven Choksey of KR Choksey Securities believes the market will continue consolidating for a while, but the current Bull Run phase will prevent it from consolidating to a very large degree.
According to him, owing to events like F&O expiry on Thursday, the Reserve Bank of India's bi-monetary policy next week, monsoon progression in subsequent week and policy announcement pertaining to Budget, investors/traders would like to keep some amount of cash in their hand. Cement stocks topped the buying list in Nifty; UltraTech Cement and Ambuja Cements rallied 5 percent each followed by ACC with 4 percent.
Private power producer Tata Power gained nearly 4 percent. Rajen Shah of Angel Broking feels the current year would be very interesting for the company. "Interestingly over the next three years the capacity of company is doubling from almost 9000 MW currently to about 18000 MW," he adds.
Shares of HDFC Bank, Infosys, TCS, Axis Bank, Bharti Airtel, Hero Motocorp, Wipro, Dr Reddy's Labs and BHEL (Q4 earnings announcement on Thursday) gained 1-2 percent. However, top coal producer Coal India, commercial vehicle maker Tata Motors and state-run oil & gas company ONGC fell 2-3 percent ahead of fourth quarter earnings on May 29.
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