The markets have closed in the red with the Sensex down 136 points, at 20,203 and the Nifty slidded 44 points at 6,090. In the broader markets, the smallcap index ended flat at 10,669 while the midcap index shut shop at 8,409, down 0.5%. The benchmark index underperformed the broader markets at 0.6% in the negative.
Markets opened in the red and fell sharply in the afternoon session after the industrial output data was much lower than expected. Industrial output slowed to 5.6% on back of a 2.6% contraction in the capital goods production and 1.2% negative growth in fast moving consumer goods (FMCG). However, the markets recoevered partially to close 96 points above the day's low.
Asian stocks also slumped as exporters fall on strengthening Yen; Japan's Nikkei Average ended down 2.1% to 9,388.64, Financials dragged the Hang Seng index down 0.4% after China raised the reserve requirements of the six big commercial banks. Speculations that China will take further steps to cool its economy weighed on other Asian Indices as well. Seoul Composite and Taiwan Weighted also ended down 1% each. China's Shanghai Composite bucked trend, the index ended up 1.3%.
Even European bourses fell sharply in early trades on back of losses in commodity related stocks. Germany's DAX 30 index droped 0.9%, France's CAC 40 index slipped 1.6% and U.K. FTSE 100 index also declined 1% as U.K's September Consumer Price Index remained unchanged at 3.1%.
With the recent run-up analysts are expecting Indian markets to consolidate at these levels. "India has received $11.5 billion net foreign investment in the September quarter, which is highest ever in any single quarter in the history of the Indian equity markets, our valuations are neither excessively high nor cheap," Jyoti Vaswani, CIO and Head - Fund Management, Aviva India said.
On the BSE sectoral indices, IT up 0.2% lead the pack followed by Health Care and Teck at 0.1% each. All the other indices closed in the red. BSE Realty index was on a broken ground, the index was 1.8% down and Capital Goods index lost 1.5% and continued to languish at the bottom of the sectoral chart.
The gainers on the Sensex were Mahindra & Mahindra (Rs 715), Reliance Communications (Rs 186)up 1% each followed by TCS (Rs 949), ICICI Bank (Rs 1138) and Tata Motors (Rs 1156) adding 0.6%- 0.8% each.
The losers on the Sensex were DLF (Rs 374), Hindalco (Rs 210), Jindal Steel (Rs 714), L&T (Rs 1998) down 2% each. Jaiprakash Associates (Rs 129), HDFC (Rs 707), ACC (Rs 997), Reliance Infrastructure (Rs 1077) shedding 1.6% - 1.8% were the other significant losers.
The market breadth was negative. Of teh total 3096 stocks traded,1796 stocks have declined while 1155 have advanced on the BSE.
