Pharma Stocks Deflate

Profit-taking in a number of index heavyweights pushed the 30-stock Bombay Stock Exchange (BSE) sensitive index (Sensex) marginally lower today. The Sensex settled with a loss of 4.40 points at 3,613.28.

Dealers said, late selling and absence of institutional support adversely affected the sentiment.

On the National Stock (NSE), the S&P CNX Nifty Index also shed 0.45 point to close at 1,169.30 points.

Pharma and automobile stocks were subdued on profit-booking, after the recent gains. GlaxoSmithKline (down 2.35 per cent to Rs 347.05), Ranbaxy (down 1.82 per cent to Rs 875.50) and Dr Reddy's (down 1.34 per cent to Rs 1,052.85) remained weak on profit-booking.

Two-wheeler majors such as Hero Honda Motors (down 1.92 per cent to Rs 367.90) and Bajaj Auto (down 0.70 per cent to Rs 493) also remained under selling pressure.

FMCG and cement stocks witnessed last minute selling. Hindustan Lever closed 0.17 per cent lower at Rs 238.45.

Cements stocks such as Grasim (Rs 292.10), Larsen & Toubro (Rs 189.65) and ACC (Rs 158.40) ended lower, after a steady start.

Heavyweight counters such as Reliance Petroleum (down 0.91 per cent to Rs 27.30) and Reliance Industries (down 0.55 per cent to Rs 306.55) also ended in the red.

However, Tata Engineering (up 5.32 per cent to Rs 136.55) rose on rumours that the company may hike the prices of its vehicles.

Tata Steel (up 2.55 per cent to Rs 102.55) also gained ground on reports that domestic steel companies were planning to raise the price of steel for the first time in over a year.

Among public sector stocks, Kochi Refineries (Rs 52.05) hit 20 per cent upper limit of the circuit breaker on reports last week that BPCL was examining a proposal to merge the company with itself.

Technology stocks remained weak amid concerns that last week's downgrade of Nortel Networks by Moody's may affect the business prospects of leading tech companies.

Infosys Technologies (up 0.39 per cent to Rs 3,989.75) came off from the day's high of Rs 4,059. Satyam Computer (down 0.40 per cent to Rs 288.95) also ended lower.

Zee Telefilms (up 3.86 per cent to Rs 177.75) rose on the hopes that new TV programmes would boost the company's advertising revenues.