Mumbai: Indian markets on Thursday closed little changed as investors avoided taking long positions due to a truncated trading week.

This week, domestic markets are open only for three days. On 1 May, markets were shut for Labour Day, while 29 April was a holiday because of polling for Lok Sabha elections in Mumbai. Elsewhere, Japan is on a 10-day holiday from 27 April to 6 May to celebrate the enthronement of the country’s crown prince Naruhito. China is on a four-day Labor Day national holiday that began on 1 May.

The benchmark S&P BSE Sensex fell 0.13% to close at 38,981.43, while the NSE Nifty 50 index declined 0.2% to end at 11,724.75.

"Going ahead, we expect volatility to continue led by ongoing general elections and the earnings season," according to Satish Kumar, research analyst at Choice Broking.

Polling in India’s national election ends on 19 May and final results will be announced on 23 May. Investors are also keeping an eye on the ongoing March-quarter earnings. Net income at 10 of the 14 Nifty companies that have reported their results so far have either beaten or matched analyst estimates, according to data compiled by Bloomberg.

IT stocks were down after the rupee strengthened for three straight sessions. Tata Consultancy Services fell 1.8%, Infosys Ltd 2.7%, HCL Technologies 2% and Wipro Ltd 1.6%.

Jet Airways India Ltd fell 12% after 'Mint' reported that its promoters could face fund diversion probe. The Registrar of Companies (RoC) in Mumbai will report to the government in a month whether the promoters of Jet Airways (India) Ltd need to be investigated for any fund diversion.