Markets End Flat, Gains In Oil Firms Offset Losses In IT, Pharma: 10 Points

Gains in banking and financial services shares counterbalanced losses in IT and pharma

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NDTV Profit Team
Written by

NDTV Profit Team

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Top laggards on the 50-scrip index were Sun Pharma, Tech Mahindra, GAIL, Kotak Mahindra Bank and HCL Tech, closing between losses of 3.5 per cent and 7.3 per cent. Top advancers included Hindustan Petroleum, Bharat Petroleum, Indian Oil, UPL and Maruti Suzuki India , which finished around 2.7-4 per cent higher.
Oil marketing companies (OMCs) surged as crude prices receded, while IT and pharmaceutical stocks weakened due to the strength in rupee.
The Nifty Energy - a sectoral index on the NSE comprising oil & gas stocks - finished 0.5 per cent higher. State-run oil retailers Hindustan Petroleum, Bharat Petroleum and Indian Oil rose 4 per cent, 3.6 per cent and 2.7 per cent respectively.
Analysts say oil marketing companies rose on crude oil prices trading below the $70 a barrel-mark.
"The way crude has broken structurally, it might lie in a low range - the moment it's below $70, it's very good for us," news agency Reuters cited Rusmik Oza, senior vice-president and head of fundamental research at Kotak Securities, as saying. "This should have a soothing effect on the currency going forward."
The Nifty PSU Bank ended with a gain of 2 per cent, led by Bank of Baroda and Canara Bank, which rose 3.5 per cent and 3.4 per cent respectively. Heavyweight State Bank of India (SBI) closed 1.8 per cent higher.
On the other hand, the NSE's sectoral indices of information technology and pharmaceuticals finished 2.5 per cent and 2.2 per cent lower respectively.
The rupee strengthened on the back of easing of current account deficit-related concerns after crude prices hit a one-year low. Selling of dollars by exporters also weakened the greenback against major peers overseas. Rupee's weakness hurts the bottom-lines for exporters.
Meanwhile, headline inflation - determined by the Wholesale Price Index (WPI) - stood at 5.28 per cent in October, marking the highest level recorded in four months. Analysts maintained their view that the central bank, which tracks consumer inflation to decide its policy, is likely to maintain status quo in December policy review.
Separate official data had earlier this week showed that consumer inflation hit a 13-month low of 3.31 per cent in October, better than Street estimates.