Nifty ends flat; Kotak Mahindra Bank, Vedanta surge over 6%

Benchmark share indices ended flat, amid a volatile trading session, as gains in ONGC and Kotak Mahindra Bank shares helped offset most of the losses. Further, the sharp fall in Chinese stocks also weighed on sentiment.

The 30-share Sensex ended down 50 points at 27,440 and the 50-share Nifty closed 7 points lower at 8,324.

"Yesterday's rally was mainly because of short covering with ONGC leading the gains. However, markets failed to sustain gains today as profit taking is seen emerging at higher levels. Further, stock specific action is seen post the fourth quarter earnings," said Deven Choksey, Managing Director, KR Choksey Shares & Securities.

BSE Metal index was the top gainer up 2.9% followed by Oil and Gas, Realty, Healthcare and FMCG among others.

IT shares ended mixed after US-based Cognizant reported 9.7% growth in net profit for the quarter to $382.9 million compared with the corresponding period last year. TCS ended up 1.5% after a foreign brokerage upgraded the stock. Wipro ended up 0.7%. However, Infosys, HCL Tech and Tech Mahindra ended 0.3-1.5% lower.

The ministry of finance has cut export duty on iron ore (for 58% fe grade and below) from 30% to 10% from June 1, 2015. Vedanta was the top gainer up 6.7% while Tata Steel gained 5%. NMDC ended up 4.1%.

Hindalco surged 4.7%. According to reports the company need not apply for fresh environment clearances (EC) for four blocks allotted to them in the recent auction as the government has transferred to them the approvals granted to the earlier allottees.

Sun Pharma’s subsidiary Taro Pharma hiked prices of its two products Enalapril Maleate and Econazole nitrate cream in US. Both drugs together could add incremental sales of $20-25 million. The move can boost Taro's current run-rate of sales by 3 per cent and EBITDA by 4 per cent. Sun Pharma ended 1.1% higher.

ONGC extended gains to end 4.2% higher on reports that the government will foot the entire subsidy bill that oil marketing companies incur on selling LPG and kerosene below market prices in FY2016. So far, ONGC, Oil India and Gail had to share a part of their profits to finance the subsidy burden of downstream firms such as Indian Oil, BPCL and HPCL.