Sensex off day's high post Feb IIP at 4.1%

The BSE Sensex shed some gains post lower than expected industrial output data for the February and revision in January data. However, positive growth in mining and capital goods sectors helped the market hold 100 points gains. Index of industrial production came in at 4.1%, which was very lower as compared to expectations of 6.7% and January's IIP of 6.8%.

January IIP revised to 1.1% as against 6.8% (provisional). Capital goods sector grew 10.6% versus negative 5.7% and mining moved up at 2.1% versus 1.2% YoY. Consumer non-durable goods growth came in at 5.1% and electricity sector grew at 8% in February. Manufacturing sector increased at 4% as against 7.5% in corresponding period.

The BSE benchmark rose 113 points to 17,312.63 led by 23 components. Meanwhile, the NSE benchmark gained 36.3 points at 5,263.15.

Shares of ICICI Bank and State Bank of India gained 1-1.5%. Index heavyweight Reliance Industries went up 0.7%.

Engineering and construction company Larsen & Toubro rose 1% and state-owned BHEL moved up 2%.

Advancing shares outnumbered declining in the ratio of 4:1.