Markets lose steam as IIP moderates; Sensex down 116 pts

Lower IIP data and weak global cues put pressure on the markets alongwith selling across the board. The Sensex down 116 points and the Nifty down 35 points.

Major headlines

April IIP at 6.3% versus 7.3%

HCC soars as shareholders approve fund raising

Bajaj Finance to raise funds via QIP




Indian indices

After trading directionless for the past few days, the Indian markets were on a downward mode in today’s trade. Lower than expected April IIP data and lack of support from global peers kept the bulls under check. Selling pressure across the board led the market to fall sharply. Negative contributors to the Sensex were RIL, ICICI Bank, L&T, ITC, Cipla and HDFC. Also, rate hike fears could be the reason after disappointing industrial output data.

The BSE Midcap and the BSE Smallcap indices closed lower by 0.34% and 0.46% respectively.

Retail shares rallied on reports that the proposal of foreign direct investment (FDI) in multi-brand retail stores is expected to come up for cabinet approval in a few weeks.

The trading session started on a flat note, with the Sensex up just 5 points at 18390 and suddenly touched the day’s high of 18399 in initial trade. Gains were for brief period as after that the index slipped and remained under pressure for the rest of the day, hitting the day’s low of 18183 in the afternoon session. The Sensex ended the trade 116 points lower at 18269 and the Nifty fell 35 points to settle at 5486.

Market sentiment

The market breadth stood weak, with 1,650 (55.50%) shares losing and 1,197 (40.26%) shares advancing. However, 126 (4.24%) shares remained unchanged.

Viewing volumes

A diversified infrastructure company - GVK Power & Infrastructure was traded the most, with over 0.57 crore shares changing hands on the BSE. It was followed by wind turbine major - Suzlon Energy (0.22 crore shares), one of the world's largest aluminium manufacturing company - Hindalco Industries (0.18 crore shares), India's second largest real estate developer - Unitech (0.17 crore shares) and a Jaypee Group company - Jaiprakash Associates (0.12 crore shares).

Sectoral & stock screening

Barring BSE Consumer Durables (CD) up 0.47%, all the sectoral indices ended lower. BSE Capital Goods (CG) was the worst performer, declining 1.08%, following that BSE Fast Moving Consumer Goods (FMCG) down by 1.04% and BSE Realty slipped by 0.80%.

In 'A' group stocks, top three gainers were - Pantaloon Retail surged by 6.87%, Century Textiles & Industries advanced by 4.03% and Glaxosmithkline Consumer Healthcare rose by 2.23%. Top three losers were - Essar Oil slipped by 3.45%, Sterling International Enterprises declined by 3.41% and Educomp Solutions dropped by 3.08%.

Global signals

The European markets dropped on Friday on persistent concerns about the pace of global economic recovery. While DAX 100 index was trading with modest gains.

Most of the Asian indices ended on a lower note on Friday. However, Nikkei and Shanghai Composite closed with gains.

The US stock index futures signal to a negative start on the Wall Street on Friday.