BSE Sensex gains some, NSE Nifty drops, as Ranbaxy Laboratories shares fall off cliff

Sep 16 2013, 16:56 IST
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Ranbaxy Laboratories Ltd provisionally slumped 30 percent to mark its lowest close in nearly one month. Reuters Ranbaxy Laboratories Ltd provisionally slumped 30 percent to mark its lowest close in nearly one month. Reuters
SummaryBSE Sensex wiped out over 350-point rise to end with a meagre 9.71-point rise

In a volatile session, the BSE Sensex today wiped out over 350-point rise in early trade to end with a meagre 9.71-point rise as a pick-up in August wholesale inflation dashed hopes of RBI cutting rates later this week. Ranbaxy Laboratories shares suffered major losses today, logging their worst single-day fall.

The broad-based NSE Nifty fell by 10.05 points, or 0.17 per cent to 5,840.55. The index moved 5,957.25 and 5,798.15. Also, SX40 index, the flagship index of MCX-SX, closed at 11,715.45, up 9.27 points or 0.08 per cent.

Quote: Multi Commodity Exchange of India Ltd (MCX)

After climbing to 20,086.43 at the outset, the BSE Sensex was hit hard by profit-booking as costlier onion and other vegetables pushed up inflation for the third month in a row to 6.1 per cent in August.

The Sensex finally closed at 19,742.47, up just 9.71 points, or 0.05 per cent compared to Friday's closing value.

Traders said besides dashed rate cut hopes, concerns that the central bank may not wind down its liquidity-tightening measures also was a factor in investors selling off positions.

Brokers said selling pressure remained strong enough and domestic markets ignored a firming trend in the Asian region as well as a higher opening in Europe.

While banking, auto, FMCG and public sector undertaking stocks clocked gains, drop in Reliance Industries, Infosys and Tata Consultancy Services (TCS) dragged down the 30-share index.

In banking, ICICI Bank and HDFC Bank notched up good gains. ITC, Bharti Airtel and Oil & Natural Gas Corp (ONGC) also rose.

In major movers, pharma major Ranbaxy, a Nifty stock, dropped by 30.27 per cent to Rs 318.85 as US Food and Drug Administration issued an import alert on drugs produced by the company at its Mohali plant in Punjab, for violation of current good manufacturing practices.

Global stocks rose on reports that former US Treasury Secretary Lawrence Summers, who was said to be in the race to replace Fed Chairman Ben Bernanke in January next year, has pulled out of the race for the top job.


NSE Nifty index fell for a third day on Monday as Ranbaxy Laboratories Ltd shares recorded their biggest single-day fall after an import alert ban from the US Food and Drug Administration, while faster-than-expected rise in August inflation also weighed. BSE Sensex on the other hand logged marginal gains.

*Stocks: Top Gainers/Top Losers

Ranbaxy Laboratories Ltd provisionally slumped 30 percent to mark its lowest close in nearly one month, while IT shares including Tata Consultancy Services (TCS) shares fell 3 percent as the Indian rupee rose over 1 percent to the US dollar.

The broader NSE Nifty index fell 0.07 percent while the benchmark BSE index ended 0.05 percent higher.

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Foreign funds (foreign institutional investors) sold $12.3 million in Indian equities, while they bought $118.4 million in debt on Sept. 13, stock market regulator data showed on Monday.

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