Indian shares ended virtually unchanged on Wednesday as investors booked profits ahead of a long weekend, although broader sentiment was supported by expectations the central bank would cut interest rates at its policy review on April 5. The broader NSE index ended 0.02 percent higher at 7,716.50. It advanced 1.5 percent in a holiday-shortened week, marking a fourth consecutive weekly gain. The benchmark BSE index rose 0.03 percent to 25,337.56, gaining 1.5 percent on the week. Markets will be closed on Thursday and Friday for public holidays.
Asian shares slipped in subdued trading on Wednesday as investors pulled back on positions ahead of the long Easter weekend, opting for caution following the suspected Islamic State suicide bomb attacks in Brussels. Indexes however were poised for a fourth consecutive weekly gain amid hopes India's central bank would cut interest rates by as much as 50 basis points at a policy review next month, on easing inflation and a government pledge to stick to its fiscal deficit target next year.
Indian markets will be closed on Thursday and Friday for public holidays. "At this juncture, with the market having run-up very sharply and ahead of the long weekend, we are seeing some degree of pressure in our market," said Vivek Mahajan, head of research, Aditya Birla Money. "It's more to do with the profit-booking as people do not want to keep big open positions over the weekend."
Recent outperformers led the losers, with ICICI Bank and State Bank of India down 0.5 percent each. Both the stocks have risen around 23 percent so far this month. Among gainers, miners such as Hindalco Industries and Vedanta rose 3 percent and 1 percent respectively, amid signs a revival in China's housing market and supply cuts by firms like Glencore and Freeport McMoRan will help shore up copper prices.
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