Markets ended the last trading day of Samvat 2068 ( year based on the lunar calendar on ancient Hindu tradition) on a lacklustre note after the government announced a disappointing set of IIP numbers for the month of September which led to selling pressure in index heavyweights. Tomorrow, the stock exchanges will hold a special trading session (Muhurat Trading) in the evening to herald the new year (Samvat 2069).
The Sensex closed weaker by 13 points at 18,670 and the 50-share Nifty slipped 2 points to close at 5,684. The markets traded in a very tight range today. The Nifty moved in a range of
The Asian shares were also subdued on Monday as investors' concerns about the fiscal crisis in the United States and Greece's bailout programme dented optimism over the growth prospects of the world's two largest economies, the United States and China.
Shanghai Composite index closed higher by 10 points at 2,079, Hang Seng advanced 46 points to 21,430. While, Nikkei closed weaker by 81 points at 8,676 and the Taiwan Weighted slipped 25 points to 7,267.
The European markets were also trading on a subdued note as tensions surrounding Greece, remained elevated ahead of a euro zone finance ministers' meeting in Brussels later on Monday to discuss whether to release a new tranche of funding to the country. CAC was down 5 points at 3,419. While, DAX and FTSE were trading marginally higher.
Back home, after showing 2.5% growth in August, industrial output declined by 0.4% in September as manufacturing activity showed a decline. This has doused hopes of a revival in the economy and may force the Reserve Bank of India (RBI) to review its policy rates earlier than the fourth quarter credit policy.
The indices of industrial production for mining, manufacturing and electricity sectors showed growth of 5.5%, (-)1.5% and 3.9%, according to the data released by the Ministry of Statistics and Programme Implementation today.
Tata Steel was the top loser among the Sensex stocks. The stock slipped 2% to Rs 383 extending its Friday’s 3.2% fall, after reporting a net loss of Rs 364 crore for the quarter ended September 2012 against net profit of Rs 212 crore in year ago quarter due to lower realization. The Tata Group Company had posted net profit of Rs 598 crore in the April-June 2012 quarter.
Hero MotoCorp from the auto pack also sliped close to 2% to Rs 1,872.
Tata Power, ITC, Jindal Steel, Maruti Suzuki, ONGC, Larsen & Toubro, GAIL India, BHEL, Wipro, Coal India, HUL and Mahindra & Mahindra were also among the losers down 0.6-0.7% each.
On the other hand, HDFC Bank, State Bank of India, Bharti Airtel, TCS, Infosys, Bajaj Auto, Sterlite Industries, ICICI Bank and Tata Motors were among the notable gainers.
On the sectoral front, capital goods index was the top loser, down 0.7% to end at 10,791. Metal, auto, power and Oil & gas indices also closed on a weak note. While, consumer durables, realty, bankex, IT and indices ended on a positive note.
Shares of breweries and distilleries makers rallied up to 27% after the UK-based Diageo Plc said it will buy 53.4% stake in the company for Rs 11,167 crore.
On Friday, Diageo agreed to buy 27.4% stake in the Vijay Mallya-owned liquor company. Post an open offer for 26%, Diageo will own 53.4% in United Spirits that will involve a total payout of Rs 11,166.5 crore.
Orchid Chemicals and Pharmaceuticals ended lower by 5% at Rs 102 on reporting a net loss of Rs 20 crore for the quarter ended September 2012 against net profit of Rs 23 crore in year ago quarter due to lower sales and higher interest cost.
VA Tech Wabag surged 8% to Rs 515 after reporting almost three-fold jump in its consolidated net profit at Rs 17.69 crore for the quarter ended September 2012 on back of higher revenue from international business. The company engaged in water and water management had profit of Rs 6.92 crore in a year ago quarter.
Cinemax India was locked in 10% upper circuit at Rs 151 after reporting a 68% quarter-on-quarter (qoq) growth in net profit at Rs 13.39 crore for the second quarter ended September 2012. The company engaged in theatre exhibition business had profit of Rs 7.98 crore in June 2012 quarter.
The broader markets ended flat with the BSE mid-cap and small-cap indices closed higher 0.3% each.
The overall breadth was negative as 1,461 stocks declined while 1,334 advanced.