Sensex Edges Lower; Banking, IT Stocks Lead Losses

BSE Sensex and Nifty edged lower Wednesday, led by losses in IT, pharma and banking stocks. The Sensex fell 37 points to 26,552 while Nifty slipped 20 points to settle from 8,040.

Here are top 10 developments:

1) Analysts said that Indian markets faced selling pressure at higher levels as traders turned cautious ahead of the outcome of Bihar elections. During the day, the Sensex had jumped as much as 209 points, supported by strong gains in Asian markets.

2) Tech Mahindra shares fell 2.5 per cent to be the biggest loser among Nifty stocks. The stock had gained as much as 2 per cent in early trade after the IT major reported in-line Q2 earnings. Infosys, Wipro and TCS also edged lower.

3) Among banking stocks ICICI Bank fell 2 per cent while Kotak Mahindra Bank declined 1.5 per cent.

4) India's largest pharma company Sun Pharma fell 1.8 per cent after its US subsidiary reported a drop in its quarterly revenues. Cipla and Lupin were among other losers in the pharma pack.

5) Tata Motors surged nearly 6 per cent on better-than-expected JLR sales in the US. It was the biggest gainer among Nifty stocks.

6) Gains in other auto stocks also helped support the markets. Bajaj Auto, Hero MotoCorp and M&M gained over 1 per cent.

7) Elsewhere, FMCG major Marico announced a 1:1 bonus issue, driving its shares 2 per cent higher. Nestle India shares also gained after the food and beverage company said three labs, mandated by the Bombay High Court, have cleared all the samples of newly manufactured Maggi Noodles.

8) Nifty may slip to 7,850 if the outcome of Bihar assembly elections does not go in favour of the BJP, said market analyst Rajat Bose.

9) Foreign institutional investors (FIIs) have sold in four out of the previous seven sessions, depriving markets of momentum, after they had been heavy net buyers in October.

10) Asian shares rose on Wednesday, taking cues from overnight Wall Street gains. Japan's Nikkei gained over 1 per cent while China's Shanghai Composite surged over 4 per cent. The sentiment in Asian markets was also boosted by a jump in China's services PMI index. European markets were trading higher.