The S&P BSE Sensex ended down 5 points at 24,677 and Nifty50 ended 14 points higher at 7,513.
Benchmark share indices came off their intra-day highs to end flat, tracking weak European cues, amid selling in late trades with pharma shares leading the decline after the government's recent ban on combination drugs.
The S&P BSE Sensex ended down 5 points at 24,677 and Nifty50 ended 14 points higher at 7,513.
In the broader market, the BSE Midcap and Smallcap indices ended up 0.5%-0.7% each. Market breadth ended negative with 1,271 gainers and 1,339 losers on the BSE.
"Markets pared gains on selling in late trades tracking weakness in European markets. Pharma shares also witnessed further selling pressure. Meanwhile, investors are also realising short term losses to offset agains the profits made in the first half of the current fiscal as part of their tax planning measures," said G. Chokkalingam, Founder and Managing Director, Equinomics Research and Advisory.
Earlier in the day markets rallied after the US Federal Reserve indicated less-than-expected rate hikes this year.
The Fed's dovish stance also raised hopes of a rate cut by the Reserve Bank of India (RBI) and also provided comfort on foreign fund inflows.
The US Fed at its two-day policy which ended Wednesday maintained a status quo on key rates and indicated there could be just two rate hikes instead of four as was widely expected by the market.
Foreign institutional investors were net sellers in Indian equities worth $1.82 billion in January and February while from March 1-15 they were net buyers to the tune of $1.66 billion.
The Indian rupee surged against the US dollar amid selling pressure in the American currency by exporters and banks. The rupee was trading 54 paise higher at Rs 66.69.
SECTORS & STOCKS
BSE Oil & Gas index was the top gainer up over 2% followed by Capital Goods and IT among others. BSE Healthcare ended down over 1% while Realty index eased 0.5%.
Financial shares ended mixed amid profit taking in late trades. HDFC and HDFC Bank ended down over 1.4% each while Axis Bank, SBI and ICICI Bank ended up 0.5%-0.9% each.
Bharti Airtel ended up 0.9% after the telecom major said it has acquired spectrum in six regions for Rs 4,428 crore from Videocon Telecom, a subsidiary of Videocon Industries. Videocon Industries ended 2% higher.
Pharma shares weakened on concerns that the pharma sector in India could witness an immediate loss of Rs 1,000 crore due to the government ban on combination drugs that include cough syrups, anti-diabetic medicines and flu treatments, according to media reports. Lupin, Sun Pharma, Cipla and Dr Reddy’s Lab ended down 0.6%-3.8%.
ONGC ended up 3% after its overseas arm ONGC Videsh Ltd (OVL) signed an MoU with Roseneft to acquire additional 11% stake in Vankorneft for $930 million.
Indian Oil Corp, Oil India and Bharat Petroleum ended up 3%-5.5% after the consortium signed an agreement to buy stakes in Russia's Taas-Yuriakh oil field in East Siberia for about $1.3 billion (about Rs 8,750 crore). Meanwhile, hike in the petrol and diesel prices also aided sentiment.
Among others, Blackstone has emerged the strongest contender to acquire IT services firm Mphasis from Hewlett Packard Enterprise in a deal that could be worth over $1 billion, according to media reports. Mphasis ended up 3.6%.
Alok Industries ended up 7.2%. Bombay High Court order on Wednesday forestalled implementation of Alok Industries' resolution for its lenders to convert loans into controlling equity until a winding-up petition by HSBC is worked out.
Deep Industries ended up 8% after the company announced that it has received an order worth of Rs 247 crore from state-owned oil exploration & production company Oil And Natural Gas Corporation (ONGC).
Shares of select steel companies are trading over 1% higher on the Bombay Stock Exchange after the Directorate General of Safeguards in the Central Board of Excise and Customs has recommended extending the duty on hot-rolled flat products of non-alloy and other alloy steel in coils of a width of 600 mm or more until March 2018.
Shares of primary producers such as JSW Steel, Tata Steel, Jindal Steel & Power,Steel Authority of India are up 1.2%-1.6% each.
