Pharma stocks remain in favour

MUMBAI, SEPT. 5. Pharma stocks hogged the limelight scoring sharp gains in an otherwise consistent weak tendency on the Bombay Stock Exchange today on selective buying by foreign institutional investors. However, IT stocks and other old economy counters met with fresh selling and drifted further downwards.

The BSE benchmark 30-share index opened fractionally up at 3232.38 and later moved upwards to the intra-day high of 3245.99 in keeping with a mild rally in cyclicals. However, selling by domestic financial institutions erased gains in majority of key scrips and the Sensex closed at 3228.60 against yesterday's close of 3231.60, netting a small fall of three points. The BSE-100 index eased by 6.68 points to 1520.98 from 1527.66.

The FIIs, who had been net sellers to the tune of Rs. 196 crores between August 29 and September 3, reportedly made fairly good purchases in Dr. Reddy's Lab, Ranbaxy Lab, Cipla, ITC and some others.

Market sources attributed this to signs of a much-awaited U.S. economic recovery with reports that the closely watched index of U.S. manufacturing activity has leapt by a surprise 4.3 points to 47.9 in August.

Dr. Reddy's Lab closed at an all time high while Cipla was at 52- week high at close. However, local funds remained sustained sellers in several old economy counters such as Hindustan Lever, Grasim, Reliance Industries and SBI.

- PTI

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