Sensex ends 251 pts lower; oil explorers' stocks fall

The BSE Sensex ended lower on Thursday, with sharp falls in oil explorers such as Reliance Industries and Oil and Natural Gas Corporation, after the government deferred a decision to raise prices of locally produced gas, while the expiry of monthly derivatives contracts also weighed on sentiment.

India on Wednesday deferred a decision to raise prices of locally produced gas for the next three months, saying the matter requires more discussion, which some investors took as a first disappointment from the newly-elected Modi government.

However, capital goods and auto stocks gained after the government extended excise duty concessions for automobiles, consumer and capital goods by six months to December 31.

Investors are now awaiting the budget on July 10 for further clarity on the government's policies.

The Sensex ended 251.07 points or 0.99 percent lower at 25,062.67 points, while the broader Nifty closed one per cent lower at 7,493.20 points. Among other stocks, ITC Ltd gained 0.06 per cent after Morgan Stanley upgraded the stock to 'overweight' and raised its price target to Rs 400 from Rs 360.