News Details
Category : Market & Rupee News
Headline : Markets continue to slide; Sensex down 62 points
Date : 11-Dec-2009 01:45 PM
Lower-than-expected growth in the Index of Industrial Production (IIP) for the month of October continued to take its toll on the local equity markets. After witnessing sharp fall from the fresh 52-week high, the S&P CNX Nifty was just 6 points away from breaching the crucial support level of 5100. The double digit growth in IIP has also raised concerns of sooner than expected corrective steps from the central bank. Banking, healthcare and realty counters were beaten down in trade while consumer durables and information technology counters were witnessing some buying interest from investors. The market breadth on the BSE remained weak; the losers thrashed the gainers in a ratio of 1529:1177 while 91 shares remained unchanged in trade.
The BSE Sensex slipped 62.38 points or 0.36% to 17,126.93. The index touched a high and a low of 17,351.71 and 17,105.97, respectively.
The BSE Mid-cap and Small-cap indices declined 0.38% and 0.31%, respectively.
In the BSE sectoral space, Consumer Durables (CD) up 0.51%, Information Technology (IT) up 0.40%, Capital Goods (CG) up 0.20%, Power up 0.19% and Auto up 0.12% were the main gainers.
On the other hand, Bankex down 1.06%, Healthcare (HC) down 0.72%, Realty down 0.64%, Fast Moving Consumer Goods (FMCG) down 0.61% and Oil & Gas down 0.40% were the main losers in the BSE sectoral indices.
India's industrial production continues to remain strong, hitting a double digit number for the second time in three months and suggesting that the economic recovery was going on unrestricted. Index of Industrial Production (IIP) registered a growth of 10.3% in the month of October, compared with 9.6% in the previous month and 0.1% in the same month last year.
The number however was somewhat below the market expectations. Most analysts were eyeing a figure around 12% owing to poor base last year and high double digit growth witnessed in China. Nonetheless, the figure is strong enough to indicate that India's industrial output continues to be in good shape and the sharp recovery that was witnessed in September output numbers should continue going forward.
The major gainers on the Sensex were BHEL up 1.82%, Infosys up 1.03%, Wipro up 0.24%, Grasim Inds up 0.23% and NTPC up 0.12%.
The major losers on the Sensex were Bharti Airtel down 2.34%, Jaiprakash Associates down 1.70%, M&M down 1.27%, ICICI Bank down 1.11% and HDFC Bank down 1.01%.
A day after the Reserve Bank of India (RBI) tightened the norms for availing foreign loans, chief of the Indian monetary authority D Subbarao said that RBI was comfortable with the capital inflows and there was no immediate plan to take measures to curb inflows.
The RBI had on Wednesday tightened the guidelines for external commercial borrowings by withdrawing relaxations provided to companies last year in wake of the global financial crisis to raise money from overseas debt markets. It restored the ceiling on interest rates that Indian companies pay for external commercial borrowing, which would mean lesser inflows in terms of loans raised by India Inc. However, the measure may also be aimed at forcing some of the excessive liquidity persisting in Indian financial system by pre-empting some of the external commercial borrowings.
The S&P CNX Nifty shed 0.56% to 5106 from its previous close of 5134.65. The index touched a high and a low of 5182.55 and 5102.85, respectively.
The top gainers on the Nifty were BHEL up 1.93%, ABB up 1.67%, Jindal Steel up 1.01%, Infosys up 0.57% and SAIL up 0.56%.
The top losers on the Nifty were Idea down 2.82%, Bharti Airtel down 2.58%, Suzlon down 1.82%, Cipla down 1.56% and Axis Bank down 1.45%.
Asian markets were trading mostly higher. Hang Seng soared 0.66%, Nikkei 225 gained 2.48%, Straits Times added 0.32%, Seoul Composite rose 0.25% and Taiwan Weighted advanced 1.53% while Shanghai Composite declined 0.021%.
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