BENGALURU (Reuters) – Indian stocks closed flat on Wednesday as major private bank shares fell and offset large gains from Coal India, while media companies soared on news of the merger of Zee Entertainment with a rival.
The blue chip NSE Nifty 50 index closed 0.09% lower at 17,546.65, while the S&P BSE Sensex fell 0.13% to 58,927.33.
Investors were also awaiting the results of a two-day US Federal Reserve meeting later in the day, during which the central bank is expected to give indications of a possible cut to its bond buying program.
Any indication of reduction would likely impact the market and “suck cash,” said KK Mittal, investment advisor at Venus India.
Private banks fell 0.7%, wiping out gains from the previous session, with Housing Development Finance Corp dropping more than 1% to be among the biggest losers in the Nifty 50.
Media shares recorded their best day ever as Zee Entertainment jumped 39% on its board approval for a merger with the Indian unit of Sony Group Corp, a week after the major shareholders of the Indian media giant called for a management reshuffle.
Real estate stocks jumped 8.5%, with Godrej Properties adding 13.2% to lead the charge in the sector.
Analysts said signs of improving sales on the easing of COVID-19 restrictions were helping sentiment, with an increase in large asset purchases expected during the upcoming holiday season.
Auto stocks ended up 1.3%, with analysts pointing to similar factors supporting the gains in the sector.
Consumer stocks fell, with Nestlé India dropping nearly 1.5% to be the first loser of the Nifty 50. On Tuesday, the president of the company told local media that there was no sure sign of it. sustained consumption is here to stay.
Reporting by Soumyajit Saha in Bengaluru; Edited by Ramakrishnan M.
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