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Indian shares closed little changed on Wednesday, as broad-based profit booking offset gains in information technology (IT) stocks after soft U.S. producer price data signalled cooling inflation.

The NSE Nifty 50 index ended 0.02% higher at 24,143.75 points, and the S&P BSE Sensex added 0.19% to 79,105.88.

The IT index gained 1.58% after data showed that U.S. producer prices rose less than expected in July, indicating a cooling economy and boosting hopes of a September rate cut by the Federal Reserve.

IT companies are sensitive to the U.S. economic outlook as they earn a significant share of their revenue from the country.

Focus is now on the U.S. consumer price data for July, due after Indian market hours, to confirm bets of a likely aggressive 50 basis-point rate cut in September.

Barring IT, eleven of the other 12 major indexes logged losses. The broader small-cap and mid-caps shed about 0.6% each.

"While the benchmarks remained flat, the broad-based sell-off suggests that bears are gradually resuming control," said Sameet Chavan, head of research of technicals and derivatives at Angel One.

Analysts expect bouts of profit-booking in Indian equities to continue in the near term due to high valuations and a lacklustre earnings season.

Metal stocks lost 1.26% after India's apex court allowed states to recover past tax dues on minerals - a move that could lead to higher expenses and weaker earnings in the sector, according to analysts.

Coal India shed 3.27%, while Tata Steel shed about 2%.

Two-wheeler maker and Nifty 50-member Hero MotoCorp fell 3.3% after missing June-quarter profit estimates.

Pharma ingredients maker Divi's Laboratories lost 4.11% on the rising risk of a sooner-than-expected entry of generic versions of its top drug. Divi's was the top Nifty 50 loser by percentage.

Indian markets will be closed on Thursday for a holiday. Trading will resume on Friday, Aug. 16.