Markets end flat amid volatile trade; Lupin up 6%

Pharma shares were the top gainers led by Lupin after the company received EIR from USFDA for its Goa facility

Benchmark share indices ended flat, amid a volatile trading session, with pharma shares gaining the most led by Lupin after the company said it has received EIR from USFDA for its Goa facility.

The S&P BSE Sensex ended up 35 points at 27,201 and the Nifty50 settled 2 points higher at 8,338. In the broader market, the BSE Midcap index ended down 0.4% and the Smallcap index ended flat with positive bias.

"Markets are in a consolidation mode after recent rally ahead of the first quarter earnings. Further, IT sector continues to exhibit weakness after select companies issued profit warnings while salary hikes could put margins under pressure during the first quarter," said A K Prabhakar, Head of Research, IDBI Capital.

Major European stock markets were trading higher led by fast moving consumer goods stocks. The CAC-40, DAX and FTSE-100 were up over 1.2% each.

Foreign portfolio investors were net buyers in equities worth Rs 265.63 crore on Tuesday, as per provisional stock exchange data.

The Indian rupee was marginally up at 67.44 to the US dollar after banks and exporters pressed sales in the US currency.

Lupin was the top Sensex gainer to end over 6% higher after the company in a release today said that it has received an Establishment Inspection Report from the USFDA which had inspected its Goa facility in July 2015. Among other pharma majors, Dr Reddy's Labs, Cipla and Sun Pharma ended up 0.9%-3% each.

HDFC and HDFC Bank were also among the top Sensex gainers up 1.8%-2.5% each.

Axis Bank ended flat. The stock turn ex-dividend today for dividend of Rs 5 per share for the year ended 31 March 2016.

FMCG majors ITC and HUL gained 1.2%-2.8% on expectations that above normal monsoon boost rural volume growth.

Tata Steel ended down over 5% amid media reports that the steel major would further delay the sale of its Port Talbot unit in Wales.

BHEL ended up 0.7%. India Ratings and Research has placed state-owned Bharat Heavy Electricals Ltd's (BHEL) "AAA" Rating on Watch Negative (RWN). The Outlook was Stable.

In the broader market, sugar shares such as Upper Ganges Sugar & Industries, Ponni Sugars (Erode), KCP Sugar, Sakthi Sugars and Kesar Enterprises ended up over 10% each on the BSE.

According to Business Standard reports, the Union Government has clarified on Wednesday that export of imported raw sugar after refining will not attract any export duty. This paves the way for movement of various shipments that were stuck at ports.

Punjab National Bank rose nearly 3% as its subsidiary PNB Housing Finance has approached the Securities and Exchange Board of India for an initial public offer (IPO) to raise Rs 2,500 crore.

Smallcap shares which have rallied include Claris Lifesciences which surged nearly 6% after the company said that it has received the Abbreviated New Drug Application (ANDA) approval for Tobramycin Injection USP, 80mg/2mL and 1,200mg/30mL multiple dose vials, in the US.

Dhanlaxmi Bank zoomed 19% on the back of over five-fold jump in trading volumes. Dhanlaxmi Bank on Tuesday said it will raise Rs 200 crore through issuance of equity shares on preferential basis.

NBCC (India) surged over 10% after the company announced that it has won contracts valued at Rs 587 crore in June 2016.