BENGALURU, Nov 23 (Reuters): Indian blue-chip indexes shed early gains to end flat on Thursday, as IT stocks pulled back after a recent rally and as Cipla slumped after the US health regulator's warning letter.
The NSE Nifty 50 index dipped 0.05 per cent to end at 19,802 points and the S&P BSE Sensex settled 0.01 per cent lower at 66,017.81. Both had risen about 0.3 per cent during the session.
Cipla sank nearly 8 per cent in its worst day in nearly eight years after the US drug regulator published its warning letter on the drugmaker's manufacturing violations at a plant.
Cipla was the top Nifty loser and also pulled pharma stocks down 1.57 per cent to snap a six-session rally.
IT stocks lost 0.59 per cent. They had gained 6.30 per cent since mid-November when soft US inflation data spurred bets that the Federal Reserve may be done raising interest rates.
On the flip side, two-wheeler maker Hero MotoCorp rose 4.52 per cent, extending its post-earnings rally to the ninth session. It was the top Nifty gainer and drove auto stocks to a fresh record high.
The more domestically focussed small-caps added 0.70 per cent, while mid-caps closed flat.
"The near-term outlook for domestic equities remains positive, but the small- and mid-cap rally seems driven by speculation and on retail inflows," said Samrat Dasgupta, CEO of Esquire Capital Investment Advisors.
Hindustan Petroleum Corp Ltd (HPCL) jumped nearly 7 per cent after Reuters reported that the government planned to ask state-owned Oil and Natural Gas Corp to consider launching a rights issue to help fund HPCL's green projects.
Newly listed Honasa Consumer, the parent of Mamaearth cosmetics, surged 20 per cent after reporting its quarterly profit nearly doubled.
Indian shares surrender gains as Cipla tumbles, IT rally ebbs
FE Team | Published: November 23, 2023 23:04:56
Indian shares surrender gains as Cipla tumbles, IT rally ebbs
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