The S&P BSE Sensex closed 19 points lower or 0.05 percent at 35,443, while the Nifty50 ended 0.70 percent down at 10,767.
The bulls failed to hold on to the momentum but managed to push the index near its previous close on Friday making a bullish candle on an intraday basis on daily charts. The index just managed to close above its crucial psychological support level of 10,750.
Weak global cues weighed on the sentiment on D-Street in the morning session but string domestic cues and strong rally is seen in the previous session helped bulls to make a comeback. Although, Nifty closed 0.70 point lower but recouped nearly 60 points of losses.
The S&P BSE Sensex closed 19 points lower or 0.05 percent at 35,443, while the Nifty50 ended 0.70 percent down at 10,767.
"Key benchmark indices opened lower and hit intraday low in early trade only to recoup most losses to finally close the day near the flat line. Selling was largely triggered by profit booking following two straight sessions of gains in Indian markets," Abhijeet Dey, Senior Fund Manager-Equities, BNP Paribas Mutual Fund told Moneycontrol.
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"Additionally, weak global cues also had a negative impact on investor sentiment. On the macro front, yields on the 10-year government bonds hit over 8 percent in the opening session on Friday, the first time since December 2014, but soon declined ahead of weekly bond auction due later in the day," he said.
Sectorally, the S&P BSE Healthcare index rose 3.6 percent, followed by the S&P BSE IT index which was up 0.7 percent, and the S&P BSE Energy index gained 0.75 percent.
On the losing front, the S&P BSE Power index slipped 0.74 percent, followed by the S&P BSE FMCG index which was down 0.3 percent, and the S&P BSE Finance index closed 0.30 percent lower.
The S&P BSE Midcap index closed 0.4 percent higher while the S&P BSE Smallcap index ended 0.58 percent up.
Top Sensex gainers include names like Sun Pharma (up 8.1 percent), followed by Dr. Reddy’s Laboratories (up 4.9 percent), Tata Motors (up 1.5 percent), and SBI (up 1.2 percent).
Top Sensex losers include names like Power Grid (down 2.1 percent), followed by HDFC (down 1.4 percent), Axis Bank (down 1.05 percent), and ITC (down 0.98 percent).
Stocks in news:
1. Pharma stocks trade higher led by Sun Pharma: Sun Pharma rallied 8.1 percent as investors cheered a regulatory development on the stock. According to a report on CNBC-TV18, the company has received a voluntary action initiated (VAI) status for its Halol plant from US FDA.
Cipla gained 3.04 percent after reports suggested that the pharma major partnered with Eli Lilly and Company for the marketing and distribution of Lilly’s BASAGLAR (insulin glargine injection) in India.
Shares of Dr. Reddy’s Laboratories gained 4.9 percent, amid a rally in pharmaceutical names. A report by Press Trust of India stating the roll-out of multiple scerlosis drugs in this fiscal may have also boosted sentiment.
2. The share of Kwality touched a 52-week low of Rs 30.10, locked at 5 percent lower circuit on a report that the stock has been included in BSE's surveillance list. According to CNBC-TV18, the share has been included in Additional Surveillance Measures (ASM) list.
3. Tata Motors: Tata Motors group global wholesales in May 2018, including Jaguar Land Rover, were at 107,343 units, higher by 24 percent, over May 2017. The stock closed 1.5 percent higher.
4. Shares of Omax Autos gained 4.9 percent as company approved to double its existing capacity. The company approved the proposal for diversification and expansion of existing capacity for manufacturing products and equipment supplied to railways.
5. Shares of Vakrangee locked at 5 percent upper circuit ahead of board meeting to be held on June 14. A meeting of board of directors of the company will be held on June 14 to consider financial results for the quarter and year ended March 31, 2018.
In other news/Global Update:
The yield on the 10-year government bonds rose above the 8 percent mark for the first time since November 2014 on Friday, two days after the Monetary Policy Committee raised key interest rates and change liquidity coverage norms. It hit a high of 8.03 and a low of 7.91. Bond yields and prices move in opposite directions.
Asian markets ended the day lower as sentiment among investors turned cautious after the recent rally. The Nikkei 225 declined 0.56 percent, or 128.76 points, to close at 22,694.50.
Meanwhile, European markets began the day lower as investors were jittery ahead of the G-7 meet in Canada during the weekend. Stoxx 600 was 0.6 percent off with all sectors trading in the red.