By GURDEV SINGH VIRK
MUMBAI--Indian shares ended flat Wednesday, giving up their initial gains as local funds sold some frontline stocks ahead of a large stake sale in state-run power utility NTPC Thursday.
The Bombay Stock Exchange's benchmark 30-stock Sensitive Index dropped 20.10 points, or 0.1%, to close at 19639.72--its lowest finish since Jan. 1.
The index had gained as much as 0.5% in opening trade, helped by positive regional markets. It had lost 1.7% in the previous four sessions.
On the National Stock Exchange, the 50-stock Nifty index rose 2.30 points to close at 5959.20.
Trading volume in the BSE's cash market fell to 20.56 billion rupees ($386.6 million) from Tuesday's 24.25 billion rupees.
"Domestic institutions, mainly insurance firms, remained on sell side ahead of the NTPC share sale. Liquid index stocks which had outperformed lately saw further consolidation," said Kishor Ostwal, chairman and managing director of CNI Research Ltd.
India's government plans to sell a 9.5% stake in NTPC Thursday, likely raising about $2.25 billion in its largest share sale in the current fiscal year that will end on March 31.
Market participants said investors' response to the NTPC stake sale could provide direction to the market in the near term.
Mr. Ostwal expects the Nifty index to find strong support at 5950, and then at 5850.
Eighteen of the Sensex's 30 component stocks closed down Wednesday, while six of the 13 BSE sub-indexes ended in the red.
ICICI Bank (532174.BY)
Among other major decliners, consumer goods company Hindustan Unilever (500696.BY)
NTPC was the top percentage loser among Sensex stocks. Its shares closed 2.1% lower at 152.30 rupees on expectations that the government will sell its stake in the company at an attractive discount to the current market price to garner investor interest.
The floor price for the sale will be announced later Wednesday.
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