Sensex ends in red after choppy trade; pharma, IT top losers

The Sensex erased all gains in a highly volatile session on Thursday to end 10 points lower, as losses in shares of software exporters and pharmaceutical companies offset gains in capital goods, banking and auto counters, amid unabated foreign fund outflows. The benchmark indices swung between gains and losses, with Sensex gyrating over 376 points both ways on alternate bouts of buying and selling.

The 30-share index opened higher at 34,650.63 points and advanced to 34,679.93 points amid sustained buying by domestic institutional investors (DIIs), better-thanexpected corporate earnings and positive global cues.

It subsequently slipped into the negative zone to hit a low of 34,303.38 points as participants began booking profits and finally settled 10.08 points, or 0.03 per cent, lower at 34,431.97.

The gauge had climbed 550.92 points on Wednesday.

Similarly, the Nifty, after shuttling between 10,441.90 and 10,341.90, ended 6.15 points, or 0.06 per cent, down at 10,380.45.

The markets commenced on a strong footing on easing concerns around the rift between the government and RBI. However, emergence of profit-booking at every rise reversed early gains.

Selling was more pronounced in information technology and pharmaceutical sector stocks amid recovery in the rupee. Shares of software services exporters were beaten down by the stronger rupee. Coal India’s offer for sale garnered ~16.5 billion worth of bids from retail investors on Thursday. Bids for 61.91 million shares were received from individual investors, as against the base issue size of 39.6 million. Including the green shoe option, 111.7 million shares worth ~30 billion were available for retail subscription. CIL shares closed on Thursday at ~261, down 2 per cent. Allotment price for retail investors after the 5 per cent discount was around ~253 per share. The total mop-up for the Centre is likely to be around ~58 billion, with dilution of 3.5 per cent stake of the Centre in CIL.