Mumbai Sep 21 (IANS) Caution over a US Federal Reserve rate-hike in December coupled with a weak rupee and profit booking by investors pulled the key Indian equity indices lower to close in the red on Thursday.
According to market observers an upsurge in pharma heavyweights like Dr. Reddy s Lab Lupin Cipla and Sun Pharma along with pumping in of funds by domestic institutional investors (DIIs) however aided to trim some losses.
The wider Nifty50 of the National Stock Exchange (NSE) fell by 19.25 points or 0.19 per cent to close at 10 121.90 points.
The 30-scrip Sensitive Index (Sensex) of the BSE closed at 32 370.04 points -- down 30.47 points or 0.09 per cent from its previous close. It touched a high of 32 462.61 points and a low of 32 164.42 during intra-day trade.
The BSE market breadth was bearish with 1 581 declines and 993 advances.
"Markets ended with modest losses on Thursday after a sharp recovery from the lows. Pharma stocks were in limelight " Deepak Jasani Head - Retail Research HDFC Securities told IANS.
"The markets however watched subdued trading on Asian bourses after the outcome of the Federal Reserve meeting. Major Asian markets ended on a mixed note while European indices like FTSE 100 DAX and CAC 40 traded higher " said Jasani.
In terms of the broader markets the S&P BSE mid-cap index fell by 0.34 per cent and the small-cap index by 0.51 per cent.
Vinod Nair Head of Research Geojit Financial Services said: "Fall in rupee on account of Fed s plan to unwind the balance sheet and a rate hike by the end of the year impacted the market sentiment."
"However market gradually recovered from low as liquidity was driven to export oriented sectors like IT and pharma to take the benefit of the dollar and of regulatory approvals " Nair added.
During the day the rupee weakened by 54-55 paise to 64.81 against the US dollar from its previous close at 64.26-27.
In terms of investments provisional data with the exchanges showed that foreign institutional investors (FIIs) sold scrip worth Rs 1 204.95 crore while DIIs purchased stocks worth Rs 1 416.55 crore.
"Benchmark indices pared some of the morning losses to end flat after pharma stocks rallied on positive corporate announcements " said Dhruv Desai Director and Chief Operating Officer of Tradebulls.
"The Nifty Pharma index rose over 3 per cent hitting 7-week high on Thursday " Desai told IANS.
Sector-wise the S&P BSE metals consumer durables index dipped by 259.76 points banking index by 208.79 points and automobile index by 115.69 points.
On the other hand the S&P BSE healthcare index surged by 377.56 points IT index was up 17.95 points and telecom index was a tad up by 0.37 points.
Major Sensex gainers on Thursday were: Dr. Reddy s Lab up 7.47 per cent at Rs 2 486.45; Cipla up 4.04 per cent at Rs 591.45; Lupin up 3.02 per cent at Rs 1 032.45; Sun Pharma up 2.59 per cent at Rs 519.55; and Tata Consultancy Services up 1.34 per cent at Rs 2 525.85.
Major Sensex losers were: Tata Motors (DVR) down 2.14 per cent at Rs 233.25; ICICI Bank down 1.99 per cent at Rs 285; Axis Bank down 1.37 per cent at Rs 512.25; Coal India down 1.09 per cent at Rs 253.60; and ONGC down 0.93 per cent at Rs 166.
--IANS
ppg/vm
