Sensex down 71 pionts amid cautious trades

Last Updated: Fri, Jan 13, 2017 15:00 hrs
A man looks at a screen across a road displaying the Sensex on the facade of the Bombay Stock Exchange (BSE) building in Mumbai

Mumbai - Amid cautious trades, the market, which pared early gains and slipped into negative territory around mid-morning, continues to exhibit weakness in mid afternoon trades.

In economic news, data released by the government after trading hours on Thursday showed India's industrial production to have grown 5.7%, the fastest pace in thirteen months, in November 2016 over November 2015. In October, industrial production had declined 1.8%. The manufacturing sector's production jumped 5.5%, while mining output rebounded 3.9% after three months of decline, contributing to the increase in industrial production.

The Sensex is down 70.87 points or 0.26% at 27,176.29, after scaling a high of 27,459.75 and a low of 27,143.07 earlier in the day. The Nifty50 of the National Stock Exchange, which declined to 8373.15 after having advanced to 8461.05 earlier, is now down 25.25 points or 0.3% at 8381.95.

Axis Bank is rising 3.75%. GAIL India, HDFC, Aurobindo Pharma, Sun Pharmaceutical Industries, Tech Mahindra, ITC and ONGC are up 1% - 2.3%.

Tata Consultancy Services is down 4.2% despite good results. The exit of N Chandrasekaran as CEO & MD of the company appears to be weighing on sentiment. Rajesh Gopinathan, till now the Chief Financial Officer of TCS, will assume charge as CEO and MD of the company, in place of Chandrasekaran, who is moving over to Tata Sons, as Chairman.

Another data showed India's inflation based on the consumer price index (CPI) dipped to 3.41% (25-month low) in December 2016, compared with 3.63% in November 2016.

These positive reports notwithstanding, the mood in the market is quite cautious with investors looking ahead to third quarter results from India Inc.

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