Stocks end in the green after volatile session, pharma stocks slide

Mumbai (Maharashtra) [India], June 7 (ANI): Equity benchmark indices oscillated between gains and losses on Friday, a day after the Reserve Bank of India (RBI) marginally reduced key interest rates and serious funding challenges appeared to cripple non-bank financial institutions.
However, the BSE S&P Sensex closed 86 points higher at 39,616 while the Nifty 50 gained 27 points to 11,871. The rally was largely by IT and financial stocks.
At the National Stock Exchange, sectoral indices of bank, financial service, IT and private bank were in the green. But Nifty pharma was down 1.2 per cent. Auto, FMCG, metal, PSU bank and realty also closed in the red.
Among the prominent gainers were IndusInd Bank, State Bank of India, Bajaj Finance, Bharti Infratel, and Bharat Petroleum Corporation.
But shares of Eros International Media fell further by 14.4 per cent, a day after tumbling nearly 20 per cent after CARE rating agency cut its creditworthiness citing delays or likely defaults in serving debt availed from banks.
Home loan lender Dewan Housing Finance Corporation Ltd (DHFL) too slid further by over 11 per cent despite reassuring comments from its management pertaining to payment of interest obligations.
On Thursday, it dropped 15.86 per cent after rating agencies ICRA and Crisil slashed their outlook on the company's commercial paper programme. Fitch Ratings said DHFL's liquidity problems highlight the funding challenges faced by non-bank finance sector.
Among other losers were Dr Reddy, Yes Bank, Cipla, Powergrid and JSW Steel.
Many investors believe the RBI's move to cut interest rates marginally is unlikely to stimulate demand in the near-term due to the absence of quick resonance in financial market.
Besides, the central bank did not give any clear stance as far as non-banking financial companies are concerned.
Meanwhile, Asian shares traded mixed as investors awaited a key US jobs report and the outcome of further tariff negotiations between the Trump administration and Mexico.
Shares in Japan and South Korea were little changed. Markets in Hong Kong and China are shut for holidays. Japan's Nikkei firmed 0.3 per cent.(ANI)