Sensex closes weak, banking, pharma add to pain

Sensex closes weak, banking, pharma add to pain

Sensex closes weak, banking, pharma add to pain
Pressured by banking and pharma stocks, the market stayed in a state of weakness for the second straight day, coming on the heels of last week's stellar rally. Data showing that domestic investors were net sellers yesterday were a dampener. According to traders, the market is going through a phase of consolidation after hitting record highs following BJP's mammoth win in UP and Uttarakhand and formation of governments in Goa and Manipur.

After hitting the day's high of 29,585.05, the 30-share Sensex closed at 29,485.45, down 33.29 points, or 0.11 per cent. The gauge had fallen 130.25 points in the previous session following profit-booking in recent gainers. Reflecting the overall trend, the NSE Nifty slipped below the 9,100-mark to touch a low of 9,087.20 before ending 5.35 points, or 0.06 per cent, lower at 9,121.50.

"While FDA observations kept pharma space depressed, banking stocks were also under pressure from potential farm loan waivers," said Anand James, Chief Market Strategist, Geojit Financial Services. Meanwhile, further strength in the rupee, which appreciated 10 paise to 65.25 (intra-day) against the dollar on robust capital inflows, curbed losses.

Meanwhile, the foreign portfolio investors (FPIs) bought shares worth a net Rs 56.67 crore yesterday while domestic institutional investors (DIIs) sold shares worth a net Rs 536.21 crore, as per provisional data. Shares of Divi's Laboratories today slumped 19.77 per cent to a 52-week low of Rs 634.35 after the company said the US health regulator has issued an import alert on the products manufactured at one of its units in Visakhapatnam.

Idea Cellular tumbled 4.76 per cent to Rs 92.95, falling for the second session in a row, after announcement of its merger with Vodafone India to create the country's largest mobile phone operator. Among Sensex stocks, drug major Dr Reddy's topped the loser's list by slumping 4.36 per cent to Rs 2,622.80 while Axis Bank shed 3.28 per cent to Rs 488. The broader markets too fell after investors locked in gains, pulling down the mid cap by 0.45 per cent and small cap 0.19 per cent.

Shares of Avenue Supermarts (D-Mart) made a stellar debut on the bourses today by surging 114.30 per. Globally, Asian bourses ended on a mixed note. European shares too were mixed in morning deals. Other major losers were GAIL 1.41 per cent, Maruti Suzuki 1.40 per cent, RIL 1.29 per cent, Sun Pharma 1.12 per cent and ICICI Bank 1.07 per cent.

However, there were notable gainers - ITC Ltd, ONGC, Infosys, L&T, Hindustan Unilever, Coal India, HDFC Bank, Power Grid and TCS. Among BSE sectoral indices, healthcare dropped 1.44 per cent followed by bank, auto, PSU and oil and gas. However, realty rose by 1.35 per cent and FMCG gained 1.01 per cent.