Sensex ends marginally lower a day before derivatives expiry

The BSE Sensex edged down on Wednesday, as software services exporters like Infosys were hit by a strengthening rupee, while broader sentiment remained weak due to recent selling by foreign investors. Foreign funds were sellers of Rs 339 crore in domestic cash shares and Rs 780 crore in equity derivatives on Tuesday, exchange data shows. FIIs have pumped a net $6-billion into cash shares since late August, helping the benchmark BSE Sensex hit a record high on November 3.

Caution continues to prevail ahead of the expiry of November derivatives contracts on Thursday and gross domestic product and fiscal deficit data on Friday. "Market is no mood to react on data. It's more a question of liquidity. Election results might swing the mood for a bit but liquidity would be key to watch for long term," said Phani Sekhar, fund manager at Angel Broking.

The benchmark BSE Sensex fell 0.02 per cent, or 4.76 points, to end at 20,420.26, marking its consecutive day of losses. The broader Nifty fell 0.03 per cent, or 2 points, to end at 6,057.10.

Software service exporter shares fell after the rupee strengthened to a one-week high against the US dollar tracking gains in a euro currency that gained after German Chancellor Angela Merkel's conservatives reached a deal with Social Democrats on forming a grand coalition.

Infosys fell 0.7 per cent, Wipro lost 1.1 per cent, while Tata Consultancy Services also ended 0.4 per cent lower.

Some bank shares also fell on profit-taking. State Bank of India ended 1.2 percent lower, while YES Bank ended 1.7 per cent down.

Among other decliners, Wockhardt slumped 8.3 per cent after the US Food and Drug Administration imposed an "import alert", effectively a ban, on a domestic plant operated by the Indian generic drug maker.

Maruti Suzuki India ended 0.2 per cent lower after the company said it will recall 1,492 vehicles.

State-run Power Grid Corp of India's fell 2.2 percent on stock supply concerns ahead of the sale of its shares valued at about $1.2 billion likely to open on December 3.

However, among gainers, some sugar companies surged after Prime Minister Manmohan Singh set up a panel on Tuesday under the chairmanship of agriculture minister Sharad Pawar to look into how to give help to struggling sugar mills.

Bajaj Hindusthan rose 1.8 per cent, while Shree Renuka Sugars ended 1.2 per cent higher.