Markets slump, global cues and IIP data weigh

Markets dip after the industrial output data slowed to 5.6% and Asian stocks beaten down badly on strengthening Yen. The Sensex has fallen 189 points to 20,150 and the Nifty has declined 64 points to 6071.

Asian stocks slumped on back of decline exporters as Yen surged against the dollar dragging Japan's Nikkei Average down 2.1% to 9,388.64, financials were leading the losses in Hong Kong after China raised the reserve requirements of the top six banks.

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.

Industrial growth slowed down to 5.6% in August versus 10.6% last year, on the back of a 2.6% contraction in the capital goods production and consumer non-durable such as fast moving consumer goods (FMCG), recorded a negative growth of 1.2%.

BSE Consumer Good index is the top loser, the index is down 2%. VIP Industries was down 1.8%, followed by Blue Star, down 1.6% and Viedeocon Industries down 1.5%.

Selling pressure continues in metal index; JSW Steel was the top loser, down 3%, followed by Hindalco, down 2.8%, SAIL and Welcorp, are down over almost 2% each.

On the Sensex, major gainers are TCS, up 1%, followed by ICICI Bank and Hero Honda, up over 0.6%.

Besides Hindalco, HDFC is down 2.4%, Larsen & Tourbo down 2.2% and Tata Steel, down 1.8% are top losers on the Sensex.

Broader markets are also leading the losses, the midcap index is down 0.5% and the smallcap index is flat.

Market breadth turns negative, 1764 stocks have declined while 975 have advanced.