The announcement of the IIP numbers exerted pressure on the markets, as the Sensex slipped 107 points to 18,478, while the Nifty shed 30 points at 5,535.
The March IIP numbers, released a little earlier, show a growth of 7.3% for March 2011, as compared to a y-o-y growth of 3.65% recorded in February. IIP growth slowed to 7.8% in the 2010-11 fiscal, as compared to an expansion of 10.5% recorded in the 2009-10 fiscal.
Mining sector growth dropped to 0.2% versus a y-o-y growth rate of 12.3%, while manufacturing sector growth slowed to 7.9% vresus 16.4% y-o-y. Basic goods growth was registered at 4.3% as compared to 10.8% recorded during the corresponding period last year. Other figures released include electricity growth at 7.2% versus 8.3% y-o-y, consumer goods growth at 7.7% versus 9.3% y-o-y, and capital goods growth at 12.9% versus 36% y-o-y.
Also, food inflation, which showed a w-o-w decline, was at 7.7% until April 30. During the same period, the fuel price index climbed 12.25%. The wholesale price index-based inflation rose 8.98% y-o-y in March, higher than February's 8.31% rise.
Hindalco Industries was the top loser on the Sensex down 4% at Rs 197, while Sterlite Industries at Rs 173 shed 2% and HDFC at Rs 655 let off more than 1%. SBI, TCS and Tata Steel were the other major losers on the benchmeark.
DLF led the gains on the Sensex at Rs 231 up 2%, followed by Reliance Communications at Rs 93 and ONGC at Rs 302 both up 1%.
THe broader markets were flat with a negative bias; the Mid-cap index was at 6,893, while the Small-cap index was at 8,411.
Realty continued to dominate the sectoral space up 1% at 2,160. The FMCG and Auto indices were flat with a posiitve bias at 3,757 and 9,203 respectively.
The metal counter saw weakness seep into the sector, as the London Metal Exchange slipped to a five month-low; the index declined more than 1% at 15,438. The IT index was off 0.6% at 6,040, while the Bankex, at 12,535, was also off 0.6%.
Of the 2,562 stocks traded on the BSE so far, 1,074 advanced, while 1,384 declined making the market breadth negative.