Sensex crashes 200 pts as Sept IIP sags to 1.9% in a month

Indian equity benchmarks crashed more than 200 points after September IIP nos indicated Industrial growth has deteriorated further, resulting in a definite slowdown in India. Industrial output grew just at 1.98% in September as against 4.1% in August. Manufacturing, basic goods, consumer goods, consumer durables goods sectors showed less growth in the September as compared to a year ago period. Banking, metal, realty and capital goods stocks were reeling under pressure. The 30-share BSE Sensex fell 222 points to 17,139.21 and the 50-share NSE Nifty lost 66.6 points to 5,154.45.

Banks were severly hit after Moody's downgraded the Indian banking system over asset quality concerns. Exposure to Kingfisher airlines added to the injury; even India's largest lender SBI reported a rise in bad loans in Q2. The Bank Nifty fell over 200 points to 9,388 level. ICICI Bank crashed 4%; HDFC Bank was down 1.5% and SBI fell 2.2%.

Depreciation in the rupee too added pressure on the market. Rupee fell to two-year lows of 50.42/$ in early trade, though it recovered to trade at around 50.22 a dollar now. Some dealers say, rupee recovery may be on the back of selling of dollar by RBI.

Tata Steel could not recover its losses, falling over 4.5% post disappointing set of numbers in the second quarter of FY12. Hindalco, Sterlite and JSPL tumbled 2-3%.

Among others, Infosys, L&T, ONGC, BHEL and NTPC were down 1-2%; Reliance Industries, ITC and HDFC slipped 0.4% each.

However, Sun Pharma was the biggest gainer, rising 2% post Taro results. Taro's second quarter (FY12) net profit jumped to USD 58.9 million from USD 18.5 million and operating profit too shot up to USD 61.9 million from USD 24.7 million year-on-year.

Hero Motocorp, TCS, Bajaj Auto, M&M, Wipro, HUL and Tata Motors were other gainers.

About three shares dropped for every share rising on the National Stock Exchange.

At 9:20 hours IST : Sensex trims losses after shaky start; Tata Steel down 4%

The BSE benchmark Sensex fell 1% in the opening trade on Friday, following sharp sell-off in Asian markets (on Thursday) and US equities on Wednesday. This was on the back of fears that Italy may seek a bailout after Italian bond yields hit 7.45%. (Indian markets were shut yesterday)

However, the market managed to trim some of early trade losses as it has priced in all negatives.

The 30-share BSE Sensex fell 109 points to 17,253.43 and the 50-share NSE Nifty lost 28 points to 5,192.90.

Results Reaction: Tata Steel fell 4.5% on disappointing numbers in Q2. Company's net was down 89% to Rs 212 crore (YoY). DLF, Hindalco were down 1.5-2%.

Infosys. Wipro, HCL Tech and TCS too were under pressure.

However, Reliance Communications gained 0.5% on buzz of stake sale in tower business.

The CNX Midcap tumbled 39 points to 7,177. About three shares declined for every share rising.

Kingfisher Airlines crashed 14% on reports that company's operations may have affected.

Results Reaction: Voltas lost 5% on weak performance in Q2; Shriram Transport was down 3.5%; IRB Infra rose 1%; GMR Infra fell 0.4%; Mahindra Satyam rallied 6%; Apollo Tyres went up 2%; GVK Power slipped 1.5%; Eicher Motors was up 1%; and REC was down 0.7%.

HCC gained 7% after Environment Ministry gave clearance to Lavasa. (Company holds over 60% stake in Lavasa).

Global cues

Asian markets were trading 0.5-2% higher.

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The US equity markets saw some buying on Thursday after Italian yields move down on reports that ECB is buying Italian and Spanish bonds. US jobless claims fell to lowest in seven months.

((Dow Jones fell nearly 400 points, NASDAQ 86 points and S&P 500 46 points on Wednesday to log worst day in six weeks and Asian markets were down 3-5% on Thursday))

European Central Bank bought Italian