 "Weekly: Indices slip over 1% ahead of RBI Policy")
Markets witnessed sharp sell of during the week with Nifty drifting below the important 5,900 mark. The hope of a rally getting extended faded mid-week with high retail and WPI nos diminishing the hopes of rate cuts in RBI's forthcoming policy and money laundering charges involving big private sector banks weakened the market sentiments.
On the weekly basis, the 30-share Sensex plunged 255.67 points or 1.30% over previous week to 19,427.56. The 50-share NSE Nifty slipped 73.10 points, or 1.23%, to 5,945.7. Meanwhile, BSE Midcap and Smallcap index declined 1.56% and 2.44% respectively.
Meanwhile, FIIs remained net buyers to the tune of Rs 4,030 cr during the last 5 trading sessions.
Backed by the manufacturing and electricity segments, industrial production increased 2.4% in January, against 0.49% contraction in December 2012. However, economists were cautious in terming the data a sign of a recovery, as lead indicators suggested poor performances by the automobile and electricity segments in February.
In January, industrial growth, as measured by the Index of Industrial Production (IIP), stood at one per cent. For the April-January period, too, it stood at one per cent, against 3.4 %in the year-ago period, data released by the Central Statistics Office (CSO) showed.
The consumer price index (CPI)-based inflation reached a peak of 10.91% in February, against 8.83% in the corresponding period of the previous year and 10.79% in January. The inflation was largely driven by high food prices. The data for February’s wholesale price index (WPI)-based inflation is likely on Thursday. It saw a considerable deceleration in January, at 6.62% against 7.18% in December.
These numbers assume importance as the Reserve Bank of India (RBI) is scheduled to announce its mid-quarter review of monetary policy on March 19. Those batting for a cut in the policy rate have been citing a decline in WPI inflation. Economic affairs secretary Arvind Mayaram today built a case for rate cut on easing inflation. He was also referring to the WPI inflation.
According to data, rural areas bore the brunt of the retail price inflation as the CPI-based inflation for these areas had risen to 11.01% from 10.79%in January; and that of urban areas had risen to 10.84% from 10.73%.
Ahead of the RBI’s monetary policy review on March 19th, the whole sale price index inflation stood at 6.84% in February 2013, as against 7.56% in the corresponding period in the previous year. Inflation was declining for four months in a row till January. In January 2013, WPI inflation was at 6.62%.
Sectoral indices
Consumer Durables Index was the top loser among the sectoral indices on the BSE during the week, down almost 4% after high inflation for the past few months has led to lower discretionary spends. Titan Inds, VIP Inds, Whirlpool, Bajaj Electricals and Blue Star slipped between 5-6% (WoW).
BSE Bankex was the second top loser, down almost 3% over previous week to 13,262. ICICI, HDFC and Axis Banks were hard hit during the week, down 3-6% amidst allegations of money laundering practices by Cobrapost.
Auto segment too witnessed selling pressure during the week, down over 2%. From the Auto space, Bajaj Auto, Tata Motors and Hero Moto slipped between 3-8% during the week.
FMCG space was the only gainer during the week with HUL and ITC gaining between 1-5% (WoW).
On the weekly basis, the 30-share Sensex plunged 255.67 points or 1.30% over previous week to 19,427.56. The 50-share NSE Nifty slipped 73.10 points, or 1.23%, to 5,945.7. Meanwhile, BSE Midcap and Smallcap index declined 1.56% and 2.44% respectively.
Meanwhile, FIIs remained net buyers to the tune of Rs 4,030 cr during the last 5 trading sessions.
More From This Section
Macro- economic data
Backed by the manufacturing and electricity segments, industrial production increased 2.4% in January, against 0.49% contraction in December 2012. However, economists were cautious in terming the data a sign of a recovery, as lead indicators suggested poor performances by the automobile and electricity segments in February.
In January, industrial growth, as measured by the Index of Industrial Production (IIP), stood at one per cent. For the April-January period, too, it stood at one per cent, against 3.4 %in the year-ago period, data released by the Central Statistics Office (CSO) showed.
The consumer price index (CPI)-based inflation reached a peak of 10.91% in February, against 8.83% in the corresponding period of the previous year and 10.79% in January. The inflation was largely driven by high food prices. The data for February’s wholesale price index (WPI)-based inflation is likely on Thursday. It saw a considerable deceleration in January, at 6.62% against 7.18% in December.
These numbers assume importance as the Reserve Bank of India (RBI) is scheduled to announce its mid-quarter review of monetary policy on March 19. Those batting for a cut in the policy rate have been citing a decline in WPI inflation. Economic affairs secretary Arvind Mayaram today built a case for rate cut on easing inflation. He was also referring to the WPI inflation.
According to data, rural areas bore the brunt of the retail price inflation as the CPI-based inflation for these areas had risen to 11.01% from 10.79%in January; and that of urban areas had risen to 10.84% from 10.73%.
Ahead of the RBI’s monetary policy review on March 19th, the whole sale price index inflation stood at 6.84% in February 2013, as against 7.56% in the corresponding period in the previous year. Inflation was declining for four months in a row till January. In January 2013, WPI inflation was at 6.62%.
Sectoral indices
Consumer Durables Index was the top loser among the sectoral indices on the BSE during the week, down almost 4% after high inflation for the past few months has led to lower discretionary spends. Titan Inds, VIP Inds, Whirlpool, Bajaj Electricals and Blue Star slipped between 5-6% (WoW).
BSE Bankex was the second top loser, down almost 3% over previous week to 13,262. ICICI, HDFC and Axis Banks were hard hit during the week, down 3-6% amidst allegations of money laundering practices by Cobrapost.
Auto segment too witnessed selling pressure during the week, down over 2%. From the Auto space, Bajaj Auto, Tata Motors and Hero Moto slipped between 3-8% during the week.
FMCG space was the only gainer during the week with HUL and ITC gaining between 1-5% (WoW).