Sensex retreats on weak industrial production data

Last Updated: Mon, Nov 12, 2012 06:17 hrs
People walk pass BSE building in Mumbai

The Indian stock market, which edged higher in early trade this morning despite weak cues from Asian peers, faltered and slipped into negative territory following the release of industrial production data for September 2012.

Capital gooods, metal and oil stocks have drifted lower. Realty and automobile stocks too have come off their highs. Power stocks have shed their gains as well. Information technology, bank and pharma stocks are mostly trading flat at present. Select FMCG and consumer durables stocks are holding on in positive territory.

At 18,660, around 32 points off a low of 18,628.53 it had touched after the release of the IIP data, the Sensex is now down 23.68 points or 0.13% from its previous closing mark. The Nifty index of the National Stock Exchange is up marginally 5688.05, off the day's low of 5673.30.

According to the data released by the government this morning, industrial production declined by a weaker-than-expected 0.4% in September from a year earlier. The government revised August output growth to 2.3% from 2.7%.

Manufacturing, which constitutes about 76% of industrial production, fell by 1.5% from a year earlier, the government said. In the April-September period, industrial production expanded an annual 0.1%.

In the year ago period, manufacturing sector saw a growth of 3.1%. Mining sector grew at 5.5% as comapred to a contraction of 7.5% in the same month last year. Electricity sector growth came in at 3.9%, against 9% in the corresponding month last year, while Capital Goods growth contracted 12.2% as compared to a contraction of 6.5% last September.

Tata Steel is down 2.2% on disappointing quarterly results. Reliance Industries is trading lower by 1.2%. Hero Motocorp, Bajaj Auto, Maruti Suzuki and Tata Power are also trading lower by over 1%.

Larsen & Toubro, Coal India, Dr Reddy's Laboratories, ITC, BHEL, Jindal Steel & Power, ONGC, State Bank of India and Infosys are down 0.3% - 1%.

Realty stock DLF is down 2.3%. Pantaloon Retail is down 2.2%. Zee Entertainment, Reliance Communications, Unitech, Dabur India, Thermax, Adani Power, JP Power, SAIL, Opto Circuits, Neyveli Lignite Corporation, Bharat Forge and United Breweries are also trading notably lower.

Bharti Airttel is up 1.3%. Tata Consultancy Services is also trading higher by around 1.3%. HDFC Bank, Hindustan Unilever, Sterlite Industries and Sun Pharmaceutical Industries are up with modest gains.

United Spirits has zoomed 25% to Rs 1700 on strong volumes. L&T Finance Holdings is up nearly 11%. J&K Bank, Financial Technologies, Aurobindo Pharma, Ashok Leyland, HDIL, IRB Infrastructure, Sun TV Network and Mahindra & Mahindra Financial Services are up 2% - 3.5%.

The auction for 2G spectrum that was freed following the cancellation of 122 telecom licences started this morning. The government expects to raise around Rs 40,000 crore through the auction. Bharti Airtel, Vodafone, Telenor-promoted Telewings, Videocon and Idea Cellular are among the participants in the auction.

In the currency market, the rupee edged up by 11 paise to 54.64 against the dollar in early trade at the Interbank Foreign Exchange this morning. On Friday, the partially convertible Indian currency had plunged to 54.75 against the greenback, losing 39 paise.

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