The index of industrial production numbers have had an impact, howsoever knee-jerk, on the Street's proceedings this morning. While the markets had surrendered their opening gains in anticipation of the IIP data and in line with the jittery Asian cues, the below-expectation numbers have only aggravated the nervousness back home. The Sensex is quoting at 18,300, down 84 points and the Nifty is at 5,491, down 29 points.
India's industrial output in April rose 6.3% from a year earlier, government data showed. Manufacturing output, which constitutes about 80% of the industrial production, rose an annual 6.9%. The data was the first of a new series with a different base year of 2004/05, new components and weightings. Under the old series, annual industrial output growth in April was 4.4%. Industrial output grew 7.8% in the 2010/11 fiscal year that ended in March, slower than 10.5% clocked in the previous fiscal year. On the Asian front, Hang Seng, Taiwan and Seoul are trading lower in the region of around a per cent each, although the Dow had bounced back 75 points at 12,124 in overnight trades as a report showing record US exports in April eased concerns about a stalled economic recovery.
Maruti Suzuki has slipped by 1.9% at Rs 1194 to top the losers list on the BSE as the strike at Manesar plant enters the seventh day. Moreover, the BSE auto index is down 1% at 8,598, hitting a two-and-half month low, after domestic auto sales grew at their slowest pace in twenty months in May, 2011. Among the other major heavyweight losers, ITC has shed 1.3% at Rs 192 and RIL has lost 1.2% at Rs 941.
On the other hand, Hindalco has gained 0.7% at Rs 184, TCS has added 0.7% at Rs 1192 and Tata Power has added 0.4% at Rs 1239.
The market breadth has turned negative. Out of 2552 stocks traded on the BSE, 1095 stocks have advanced while 1335 have declined.
