February IIP weighs market down

Today's major news

Lacklustre debut for Intrasoft Technologies, the stock closed 9.90% higher.

Index of Industrial Production (IIP) grows 15.1% in February, lower than Bloomberg’s estimate of 16%

Insurance Regulatory and Development Authority (IRDA) rejects Securities and Exchange Board of India (SEBI)’s ban on unit-linked insurance plans (ULIPS) offered by insurance companies

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Global signals

With Euro zone approving euro 30 billion emergency aid mechanism for Greece unanimously, European markets were trading flat after erasing morning gains. As of writing this report, FTSE 100 was trading 0.04% lower.

Major Asian indices had a mixed outing—Shanghai Composite (China), Hang Seng (Hong Kong) and Kospi (Korea) closed in red while Nikkei (Japan), Jakarta Composite (Malaysia) and Straits Times (Singapore) closed in green. SGX Nifty closed 18 points lower.

US stock futures point to a higher start for the Wall Street on Monday as Eurozone finance ministers approved a massive aid plan for Greece. Investors keep an eye on earning of aluminium major Alcoa.

Indian indices

Below expectation IIP numbers for February and SEBI—IRDA spat over ULIP offering by insurance companies, combined with mixed Asian markets and continued selling in capital goods, automobile and banking stocks shrugged off positives like Euro zone approving euro 30 billion emergency aid mechanism for Greece and encouraging US retail sales, home stats and recovering job market to push market back home lower. Banking stocks edged lower on news that the Reserve Bank of India (RBI) may tighten its monetary policy in the upcoming policy review scheduled on April 20.

The Sensex that opened 59 points lower (at 17874) soon turned positive to touch the day’s high (17995) before plunging to negative territory again. However, at noon, the market pared the losses and turned positive, but in post-lunch session, the Sensex turned negative to touch the day’s low of 17816 before closing at 17853, around 80 points lower than the previous close, while Nifty closed 22 points lower at 5340.

Market sentiment

Despite a negative closing, the market breadth was slightly positive as advancing stocks outdid declining stocks. Of the 2,968 stocks traded on the BSE, 1,583 stocks advanced, whereas 1,302 stocks declined. Eighty three stocks closed unchanged.

Sectoral & stock screening

Of the 13 sector indices on BSE, BSE FMCG led the chart of toppers with gains of 0.70% followed by BSE Realty that surged 0.57%. On the other hand BSE CG fell the most with loss of 1.25% followed by BSE Auto that declined 0.85% and BSE Bankex that quoted 0.84% down.

On stocks’ front, Balrampur Chini Mills was the star stock of the day posting gains of 5.58% followed by Jet Airways that surged 3.73% and Indiabulls Financial that rose 3.58%. Banking stocks were hit the worst with Allahabad Bank (down 3.61%), Bank of Baroda (slid 3.43%) and Central bank of India (declined 3.33%) occupying the top three slots in the losers’ chart.

Viewing volumes

India's second biggest realty company Unitech saw the highest trading with over 0.52 crore shares changing hands on BSE followed by Ispat Industries (0.30 crore shares), industrial finance company IFCI (0.30 crore shares), GVK Power and Infrastructure (0.25 crore shares) and wind turbine major Suzlon Energy (0.23 crore shares).