Indian shares drifted lower on Tuesday as investors positioned themselves ahead of Fed Chairman Ben Bernanke's press conference tomorrow after the conclusion of a two-day policy meeting. Global cues were mixed, with the Asian markets ending mostly higher on hopes the Fed will continue its easing policy, while European stocks were volatile, swinging between gains and losses, ahead of U.S. housing data due later in the day.
The Indian rupee remained under pressure, trading at 58.64 against the dollar due to concerns over current account deficit and dollar demand from custodian banks and importers. Finance minister P Chidambaram yesterday said that the government is proactively working to operationalize 215 stalled projects involving investment of about Rs. 7 lakh crore in order to increase production activity of oil and coal in the country and contain the current account deficit.
The benchmark 30-share Sensex closed down 103 points or 0.53 percent at 19,223, with 20 of its components retreating. The broader Nifty index fell by 36 points or 0.62 percent to 5,814, while the BSE mid-cap and small-cap indexes posted modest gains.
Healthcare stocks lost ground after the National Pharmaceutical Pricing Authority said it would fix the ceiling prices of over 300 formulations based on bulk drugs by the end of this month. Sun Pharma slid half a percent, Dr Reddy's Laboratories shed 0.6 percent and Cipla edged down marginally.
Shasun Pharmaceuticals plunged 8 percent on reports of production disruption due to an "illegal strike" by its workers at the company's Pondicherry facility. Ranbaxy Laboratories tumbled 3.9 percent ahead of a Supreme Court hearing next week on a petition seeking probe against the company for allegedly manufacturing and selling adulterated medicines.
ONGC, Axis Bank, Bank of Baroda, UltraTech Cement, PNB, Indus Ind Bank and NTPC lost 2-3 percent.
Telecom stocks rose for a second consecutive session after telecom regulator TRAI lowered the ceiling for national roaming charges. Reliance Communication soared 11.8 percent, Idea Cellular added 1.6 percent and Tata Teleservices closed 1.7 percent higher.
Maruti Suzuki closed up 0.3 percent even as global investment bank JP Morgan downgraded its rating on the stock, citing uncertain demand environment and increasing competition in higher value segments.
VA Tech Wabag rallied 3.4 percent on winning a Rs 262-crore overseas order in a joint venture with Pratibha Industries. Nitesh Estates soared 5.6 percent on news its promoter, Nitesh Shetty, has released 11.16 million shares representing 7.66 percent stake in the company from a pledge made with JM Financial.
Venus Remedies advanced 2.2 percent after the company received patent from Mexico for its novel antibiotic Potentox. Orchid Chemicals jumped 6.2 percent after its oral formulation facility near Chennai received approval from the U.S. Food and Drug Administration. Cinemax India hit the 5 percent upper circuit limit following an update on its merger with PVR.
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