IIP grew by 10.3% though Sensex ends lower - Equities ended volatile session are led by losses in banks, realty and FMCG space. Also, benchmarks dismissed positive cues from the European markets as the Index of Industrial production data damped sentiments.
Whereas India’s IIP for the month of October grew by 10.3% against a paltry 0.1% a year ago. Basically, the growth was driven by manufacturing, peculiarly consumer durables, repelled by the stimulus packages. Although, the market was anticipating over 12% and came under the pressure soon after the benchmark hit 52 week high.
According to the economist at Networth stock broking, Rupali Nambiar, “The growth in Index of Industrial Production is lower than expected but all its components posted robust growth aided by domestic demand and the government’s stimulus package. The consensus estimate was 12%. On the flip side, the robust industrial production number at 10.3%, September FY10 quarter GDP at 7.9% and rising food inflation – will add pressure to bring forward an interest rate hike and cut stimulus spending.”
BSE (Bombay Stock Exchange) Sensex was at 17,119.03, down 70.28 points or 0.41 per cent. The Index touched an intraday low of 17056.12 and high of 17351.71. NSE (National Stock Exchange) Nifty ended at 5117.30, down 17.35 points or 0.34 per cent. The 50-share index hit a new 52-week high of 5182.55 but failed to hold on to it. It has touched a low of 5088.40.
The technical expert at ULJK Securities Mr. Praveen Kumar said, “Nifty failed to sustain 52-week high of 5182.55 as the IIP data was below expectation. The uptrend on Nifty is still intact until it breaks the intermediate support level of 5050 and 5000. On the other hand there is a stiff resistance around 5182 levels, a close above 5150 for the next three sessions can be considered as bullish.”
BSE Midcap Index was down 0.6% and BSE Smallcap Index moved 0.73% lower. Among the sectoral indices, BSE Bankex was down 1.22%, BSE Realty Index slipped 0.94% and BSE FMCG declined 0.73%. BSE Capital Goods Index gained 0.64% and BSE Power Index was up 0.59%.
Amongst the Sensex gainers were BHEL (3.12%), NTPC (0.43%), Infosys Technologies (0.42%), ACC (0.36%) and Reliance Infrastructure (0.32%). On the contrary, Sensex losers include Bharti Airtel (-3.21%), ICICI Bank (-1.48%), State Bank of India (-1.31%), Jaiprakash Associates (-1.12%) and Reliance Communications (-1.1%).
On the BSE, market breadth was negative, comprised with 1754 losers against 1084 gainers. Besides this, European markets were in the positive terrain led by commodities and banks. FTSE 100 was high by 1%, CAC 40 gained 1.72%, and DAX moved 1.14% higher.
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