Markets trim losses post better-than-expected IIP data

Benchmark Indices have trimmed losses after the announcement of robust November IIP data. Industrial output growth for November stood at 5.9%, beating street expectations. The IIP numbers for the month of October was at -5.1%.

At 1130 hrs, the Sensex was down 54 points at 16,119 and the Nifty slipped 4 points to 4,857.

Markets were trading weak in the early trades led by Infosys’s poor guidance. Asian markets were also trading weak. China's Shanghai Composite and Japan's Nikkei have fallen by nearly 1% each.

BSE Technology index has tumbled by nearly 5%. IT stocks are hammered post weak guidance from Infosys. Its Q3 net profit surged 24.5% to Rs 2,372 cr quarter-on-quarter - better than analysts' expectations. But the company cut its FY12 dollar revenue guidance to 16.4% as against earlier guidance of 17.1-19.1%.

Infosys has tumbled nearly 7%. Infosys's lower revenue guidance also weighed on other software majors. TCS and Wipro have lost between 2-4%.

Index heavyweight Reliance Industries too is under pressure, falling by nearly 1%.  

However, counters like Banks, Metal, Capital Goods and Consumer Durable have capped the downside, surging between 1-2%. 

From the banking space, SBI and ICICI Bank are up between 1-2% on hopes that the central bank may announce a cut in the cash reserve ratio.

Capital goods majors L&T and BHEL have gained 1% each after November capital goods output improved significantly to -4.6% from October's degrowth of 25.7%.

Metals stocks too are trading firm. Tata Steel, Hindalco and Sterlite Industries are up between 1-2%.

Realty stocks too have gained for the third straight day on expectations that the RBI will start cutting interest rates in the coming months to support the slowing economy. Lower interest rates may help revive demand for properties. DLF has zoomed by nearly 1%.

The broader indices have recovered from the day’s low and are trading firm. BSE Midcap and Smallcap indices have gained by nearly 1% each.

Titagarh Wagons has gained 2% to Rs 416 after the company plans to foray into shipbuilding, reports sources. The company is likely to pick a stake in the newly floated firm Titagarh Marine Ltd.

Everonn Education has frozen down circuit of 20% at Rs 355 on the Bombay Stock Exchange.

The market breadth in BSE remains healthy with 1,361 shares advancing and 868 shares declining.