Sensex ends flat after hitting record highs

MUMBAI, Apr 22 (Reuters): The BSE Sensex ended flat on Tuesday after hitting record highs for a second consecutive session as momentum waned ahead of the expiry of monthly derivative contracts and on expectations that current levels sufficiently price in fundamentals.

Investors booked profits in recent outperformers such as State Bank of India (SBI) and Tata Motors, although gains in other sectors such as capital goods helped offset those losses.

Although overseas investors have underpinned sentiment, the pace of buying has slowed. Foreign institutional investors bought shares worth 2.13 billion rupees ($35.22 million) on Monday, having bought $67.58 million worth on Thursday.

Analysts warn markets could be headed for a period of range-bound trading. Derivative contracts will expire on Wednesday while markets will remain closed on Thursday as Mumbai heads to the polls in the on-going general elections.

"There will be muted upside for the time being," said Deven Choksey, managing director, KR Choksey Securities.

"You may see action in individual stocks, which will find intermediate upmoves on rotation," he added.

The Sensex closed 0.03 per cent lower at 22,758.37, after gaining as much as 0.39 per cent to hit an all-time high of 22,853.03 earlier in the day.

The Nifty ended 0.03 per cent down at 6,815.35, having earlier advanced as much as 0.3 per cent to hit a record high of 6,838.