Sensex slips over 100 pts; banks, infrastructure dip
Finally Indian equity benchmarks saw the direction on the downside after a consolidation seen since last Friday. The Nifty shed more than 50 points, dragged down by 45 stocks out of 50 due to spike up in dollar index.
June 10, 2011 / 15:41 IST
Finally Indian equity benchmarks saw the direction on the downside after a consolidation seen since last Friday. The Nifty shed more than 50 points, dragged down by 45 stocks out of 50 due to spike up in dollar index, which was up by 0.25%.
Rate hike fears could be the reason after disappointing industrial output data. JP Morgan and Standard Chartered Bank expect 25 basis points hike in key rates in June policy by Reserve Bank of India.India's industrial production grew at 4.4% in April versus 7.3% in March as per old series. As per the new series, the IIP grew at 6.3% in April. A CNBC-TV18 poll had estimated 5.1% growth in April industrial output.The poor performance of the manufacturing and mining sectors pulled down the overall growth of industry as per the old series with a base year of 1993-94 from 16.6% in April last year.April IIP growth figures 'disturbing', says Finance Minister Pranab Mukherjee. "We need to wait for longer term IIP growth to see trend," he said.The 30-share BSE Sensex was trading at 18,206, down 179 points and the 50-share NSE Nifty fell 56 points to 5,464. Even market breadth was in favour of declines - about 391 shares advanced as against 879 shares declined on National Stock Exchange.Financial, infrastructure, FMCG, metal and realty companies' shares were pulling the market down. Heavyweight Reliance Industries plunged 2%. Heavyweights ITC, NTPC, SBI, ICICI Bank, L&T, Bharti Airtel, HDFC, HDFC Bank and Wipro were down 1-1.5%.However, TCS, ONGC, Ranbaxy Labs and Hindalco were only gainers on Nifty.MidcapsFresenius Kabi, HCC, Shoppers Stop, Pantaloon Retail and Century rallied 4-11% while Indian Metals, India Cements, Sterling International, Bhushan and BASF lost 3-5%._PAGEBREAK_Nifty trades weak; FMCG, oil & gas, auto downThe NSE Nifty was trading weak and found it difficult to notch up to its psychological 5450 mark in afternon trade. Except BSE IT index, all other sectoral indices were trading negative. FMCG, oil & gas, auto, banks and realty indices were down over 0.5% each.Stocks like Reliance, ICICI Bank, ITC, L&T and HDFC Bank were negative contributors to the Sensex.Anil Manghnani, Modern Shares & Stock Brokers says after this rangebound session market could swing either ways. "The problem is lack of volumes. If there is a small amount of buying or selling, whether in Nifty futures or stocks, the market tends to move 30-40 points very quickly," he says. At 13.13 hrs IST, the Sensex was down 81.04 points or 0.44% at 18303.86, and the Nifty was down 31.90 points or 0.58% at 5489.15.About 1266 shares advanced, 1440 declined, and 943 remained unchanged.Top losers on the Sensex were Maruti Suzuki at Rs 1,197 was down 1.66%, Hero Honda at Rs 1,722.60 down 1.31%, ITC at Rs 192.55 down 1.23%, Jaiprakash Asso at Rs 81.30 down 1.22% and Reliance at Rs 942.55 down 1.21%.Refinery major HPCL was trading at Rs 367.85 down 0.93% from its previous close of Rs 371.30.However, top gainers on the Sensex were Hindalco at Rs 184.70 was up 0.87%, ONGC at Rs 267 up 0.68%, TCS at Rs 1,191.50 up 0.61%, Infosys at Rs 2,868.10 up 0.23% and Jindal Steel at Rs 632.30 up 0.16%.Index of Industrial production (IIP) for the month of April grew at 4.4% - less as compared to growth of 7.3% in previous month, as per old series. As per new series, which have 45% more items than old series, IIP grew at 6.3%.April IIP growth figures 'disturbing', says Finance Minister Pranab Mukherjee. "We need to wait for longer term IIP growth to see trend," he said.Nifty below 5500 post IIP data; rate sensitives dipIndian equity benchmarks slipped further a bit post the industrial output data. The Nifty was trading below the 5500 mark amid volatility. Rate sensitives were taking beating as experts feel that rate hike is likely in June policy.Index of Industrial production (IIP) for the month of April grew at 4.4% - less as compared to growth of 7.3% in previous month, as per old series. As per new series, which have 45% more items than old series, IIP grew at 6.3%.April IIP growth figures 'disturbing', says Finance Minister Pranab Mukherjee. "We need to wait for longer term IIP growth to see trend," he said.Sectorwise growth too was quite bad (as per new series). Manufacturing sector growth was 6.9% as against 14.4% in a year ago period and capital goods sector grew at 14.5% versus 35.5% during the same period. Mining sector growth was 2.2% in April as against 9.2% in same period the previous year.JP Morgan and Standard Chartered Bank expect 25 basis points hike in key rates in June policy by Reserve Bank of India.The 30-share BSE Sensex was trading at 18,299, down 85 points and the 50-share NSE Nifty lost 28 points to 5,492.Heavyweights Reliance Industries, ITC and ICICI Bank were down 1-1.5%. L&T, SBI, Bharti Airtel, BHEL, NTPC and HDFC Bank slipped 0.5-1%.In auto space, Maruti Suzuki, Tata Motors and Hero Honda fell 0.8-1.8%. M&M and Bajaj Auto were moderately lower.However, TCS, ONGC, Ranbaxy Labs, Hindalco and Tata Power were only gainers on Nifty.MidcapsShoppers Stop, Trent, Pantaloon Retail, Jai Corp and Unichem Labs gained 3-9% while Indian Metals, KGN Industries, Simplex Infra, Sterling International and India Infoline lost 2.5-4%.Nifty tests 5500; ITC, RIL, Bharti, ICICI Bank dipThe benchmark Nifty has tested the 5500 mark amid volatility, dragged down by heavyweights like ITC, Reliance Industries, Bharti Airtel, ICICI Bank, SBI, Infosys and NTPC. Asian markets too slipped further. Hang Seng and Kospi fell 0.7% each. Taiwan lost 1.3%. Even Nikkei erased some gains to trade with 0.8% gains (it was up 1.5% in early trade).Anil Manghnani, Modern Shares & Stock Brokers says after this rangebound session market could swing either way.
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