Sensex slips on IIP data...Nifty ends below 5500

The Indian equity markets ended in the red for a third straight trading session on Friday, with the NSE Nifty closing below the crucial 5500 mark, as index heavyweights like L&T, Tata Steel, ICICI Bank and Hero Honda succumbed to fresh round of selling. The market sentiment was hit after the release of disappointing industrial production data.

India's industrial output grew by 6.3% in April 2011 as per the new series. This was lower as compared to the 8.8% expansion in March as per the new series. As far a the old series is concerned, Industrial output grew by a modest 4.4% in April this year versus 7.3% in March 2011.


It was a day of gradual decline today. The start was virtually flat; the indices then started slipping slowly and hit intraday low in the mid-afternoon before staging a minor comeback in late trade.

Barring the BSE Consumer Durables index, all the other BSE sectoral indices ended in the red. The BSE Capital Goods index and the FMCG index fell the most, down by 1% each. Oil & Gas, Banking, Power, Metals and Realty indices lost between 0.5% and 1%. Even the Mid-Cap and the Small-Cap indices ended lower, down by almost 0.5% each.

"The key Indian indices may continue to remain lackluster amid lack of interest among the traders as well as investors. The recent trend of light trading volumes underscore a general lack of participation for the time being. A clear direction might emerge once the Nifty manages a decisive break out from the current trading range. The RBI could boost rates by 25 bps on June 16 as inflation continues to be sticky. Food inflation is back above 9%. Inflation data for May will be out on June 14," says Amar Ambani, Head of Research, IIFL - India Private Clients.

The BSE Sensex ended at 18,268 losing 116 points. It had earlier touched a day's high of 18,399 and a day's low of 18,182. It opened at 18,390. The NSE Nifty closed at 5,486 losing 35 points.