After opening lower on weak global cues and trading in negative territory for more than a couple of hours, the market has eged higher post release of the industrial production data for April.
Though industrial production figures are quite disappointing, the market has moved up post release of the data, amid hopes the central bank will announce a rate cut in the forthcoming monetary policy review.
According to the data released by the government a little while ago, India's industrial production growth barely budged in April, as manufacturing growth came to a grinding halt while the output in Mining and Capital Goods sub-categories shrank.
The combined output of Factories, Mines and Power Utilities, as measured by the index of industrial production, grew by a measly 0.1% in April as against a 5.3% growth in April last year, the data showed.
As per use-based classification, there has been negative growth in Intermediate Goods and Capital Goods, at minus 1.4 percent and minus 106.3 percent, respectively. Meanwhile, Basic Goods growth stood at 2.3%, while consumer durables and Consumer Non-durables sectors grew at 5% and 5.4%, respectively. The Government has revised March's IIP reading, from a 3.5% decline to a 3.2% drop.
Bank, realty and automobile stocks are finding good support. Stocks from consumer durables and capital goods stocks are also making their way up now. Select metal and oil stocks have posted gains.
Information technology stocks are off their lows. Power and healthcare stocks are mostly subdued. FMCG stocks continue to trade weak.
The Sensex, which spurted to 16,729.65 from a low of 16,553.47, is currently up 34.54 points or 0.21% at 16,702.55. The Nifty index of the National Stock Exchange is up 14.55 points or 0.29% at 5068.65.
In the currency market, The rupee drifted lower in early trades and was quoting at 55.85 against the dollar on the Interbank Foreign Exchange, down 11 paise from its previous close, following dollar gains against other currencies overseas amid a weak trend in the equity market.
Sterlite Industries, Larsen & Toubro, Maruti Suzuki, Hindalco and HDFC Bank are up 1% - 1.6%. State Bank of India, Mahindra & Mahindra, ICICI Bank, Tata Motors, Sun Pharmaceutical Industries, Bajaj Auto and Infosys are also trading notably higher. ONGC and Cipla are up with modest gains.
Wipro is trading lower by around 2.3%. Dr Reddy's Laboratories is down with a loss of 2%. ITC, Hindustan Unilever, Tata Power, Jindal Steel and Hero Motocorp are also trading in negative territory, albeit with less pronounced losses.
Pipavav Defence is trading higher by around 2.5% at Rs 82.15. The stock is up on reports the company has tied up with French naval shipbuilder DCNS for technology transfer. In a filing to the stock exchanges, Pipave Shipyard said that the focus of teaming together is to build the most modern assets, including modern warships for the Indian Navy and the Coast-Guard.
Pantaloon Retail, Power Finance Corporation, REC, HDIL, Canara Bank, BPCL, Punjab National Bank, Mphasis, Allahabad Bank, Bank of Baroda and Federal Bank are also up with strong gains.
Godrej Industries is trading 3.4% down. Strides Arcolab, Bata India, Lupin, Oil India, Suzlon Energy, Ranbaxy Laboratories, HCL Technologies, Zee Entertainment, Oberoi Realty and Alstom T&D are also trading notably lower.