Market gains for 3rd session, but pharma holds it back

The 30-stock index has gained 520.6 points, or 2%, in three days

Continuing the winning run for the third straight day, Sensex rose nearly 107 points to finish at an over two-month high of 27,247 and Nifty breached the key 8,400 mark, fuelled by power, information technology (IT), and banking stocks, but the gains were restricted by battered pharma counters.

Shares of power, IT, utilities, and capital goods firmed up on good buying enquiries, while those of pharma, FMCG, automobile, and realty declined on selling pressure. FMCG is fast-moving consumer goods. 

Among laggards, pharma stocks were worst-hit, following US president-elect Donald Trump's strong remarks on pricing of medicines, indicating tougher working environment for Indian drug firms going ahead in the US.

Lupin was battered the most, falling two per cent.

Anand James, chief market strategist, Geojit BNP Paribas Financial Services, said, "Markets opened the day on a firm note but could not sustain gains, as Trump's comments during Wednesday's press conference held pharma stocks back. With key macros as well as Q3 numbers expected to be announced shortly, markets were not in a mood to chase prices higher anyway."

The Sensex opened higher at 27,171.7 and hovered in a range of 27,166.7 and 27,279 before ending at a two-month high of 27,247, showing a gain of 106.7 points, or 0.4 per cent.

The 30-stock index has gained 520.6 points, or two per cent, in three days. The Sensex had last seen this level on November 10, 2016, when it ended at 27,517.7.

The 50-share Nifty rose by 26.5 points, or 0.3 per cent, to close at a two-month high of 8,407. It had also ended at 8,525.7 on November 10 last year. 

Domestic institutional investors (DIIs) bought shares worth a net Rs 1,116.1 crore on Wednesday while foreign funds sold shares worth a net Rs 627.30 crore that day, going by provisional data released by stock exchanges.