Software, Pharma Stocks Lead Sensex Rally

Software and pharma scrips surged on the announcement of fresh sops yesterday, helping the 30-scrip Bombay Stock Exchange sensex claw its way back from a 262-point drop.

The sensex finally closed at 4,335.29 points, down just 36.93 points from Tuesday's close.

Not all software stocks were gainers. Heavyweights like Wipro, NIIT, Pentamedia Graphics and Silverline closed with losses of 8 to 12 per cent.

As a result, the Business Standard ICE (information, communications and entertainment) index fell below 200 points for the first time. It closed down 5.83 points at 191.03.

Sun Pharma led the pharma resurgence with the maximum permissible gain of 12 per cent to close at Rs 362.70. Dr Reddy's Labs, Glaxo, Burroughs Wellcome, Wockhardt, Parke Davis, SmithKline Beecham Pharma, Ranbaxy, German Remedies, E Merck and Pfizer posted moderate gains.

 

The sensex opened almost 172 points lower at 4,200.74 due to the sharp fall on the Nasdaq overnight. It dipped to an intra-day low of 4,109.66 before closing at 4,335.29. The S&P CNX Nifty closed with a loss of 17.40 points at 1,316.05.

The market cap of scrips listed on the BSE fell by another Rs 12,305 crore to Rs 7,25,645 crore.

"After the 65 to 70 per cent price erosion in the ICE sector stocks, it is virtually bottoming out. Particularly if the sector growth is going to be between 70 and 120 per cent over next 12 months. As a result, the current environment provides a perfect buying opportunity for the brave who know that the downside is limited to 5 to 10 per cent only," said Sun F & C Mutual Fund CEO Gul Teckchandani.

"In any condition, the sensex should not breach and close below the 4109 level. Otherwise, expect a free fall up to 3840 or 3600 levels," technical analyst Anirudh Sethi said.

Aggregate volumes on the National Stock Exchange were higher at Rs 3,278.43 crore, against Rs 2,425.05 crore on the BSE.