Shares on the key Mumbai index ended flat on Tuesday, as investors either booked profits or stayed put after the stocks index rallied to an eight-month closing high the previous day. Bonds ended higher on the day, but started paring gains on renewed worries over rising interest rates and tight cash supply. The 30-share Mumbai index ended 0.01 percent lower at 5,929.60 points. It had gained nearly 4 percent last week.
"The index was in a consolidating mode after the recent gains, and there were not many buyers at the higher levels to take it up further," said Vimesh Zaveri, head of dealing at IL&FS Investsmart.
The Diwali festival has seen a run-up in stocks in previous years. Regular trading is closed on Friday, but a limited session will be held.
Infosys Technologies Ltd, the No 2 exporter, rose nearly 1 percent to 2,035.25 rupees, a new four-year high.
Hindustan Petroleum Corp Ltd fell 1.6 percent and Indian Oil Corp, which said it expected a $1.3 billion revenue loss in November-March because, fell 0.8 percent.
Bonds weakened in late Tuesday trade on concerns over rising interest rates and tight liquidity plagued traders. The market had enjoyed a temporary respite after the previous day's sale of fresh stock was fully sold and the expenditure secretary said the government's borrowing programme was flexible.
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