Indian shares fell in the late morning trades on Monday after country's industrial output unexpectedly contracted for the month of September led by slump in manufacturing space. Weakness was seen in index heavyweights, capital goods and auto shares. At 11:25AM, Sensex fell 40 points to 18,640.50 while Nifty shed 8 points to 5,677.90. The index of industrial production (IIP),unexpectedly contracted to 0.4% in September, compared to analyst's estimate of 2.8% expansion. Manufacturing, which constitutes about 76% of industrial production, fell by 1.5% from a year earlier, government data showed Monday. Revised government figures released on Monday showed August output growth was revised down to 2.3% from 2.7%. The Asian markets were trading on a subdued note as investor sentiment was weighed down by concerns over U. S. fiscal woes as well as Greece's bailout, despite improving economic data from the world's two largest economies, the United States and China. The Shanghai Composite was up 3 points at 2,072, Hang Seng advanced 18 points to 21,402 while Nikkei was down 64 points at 8,693. Among the index heavyweights, Reliance Industries was down 1.2% and Infosys slipped 0.4%.
Capital goods shares were down on the back of sharp contraction of -12.2% in September. L&T was down 0.9% and BHEL was down 0.4%. In the auto segment, Bajaj Auto, Hero MotoCorp, Maruti Suzuki and Mahindra & Mahindra were all down 0.4-1.3% each. Tata Steel is trading lower by 2% at Rs 382, 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. DLF fell 2.4% ahead of its second quarter earnings scheduled later today. India's biggest developer is expected to post a drop in JUl-Sep quarterly profit as high interest costs continued to deter buyers from realty space. Educomp Solutions Ltd, dropped 3% after the company announced a 72% drop in its net profit for the September quarter at Rs 3.6 crore. Essar Oil Ltd, the private sector oil refiner, gained 1% after the company posted a Rs 105 crore net profit in the quarter ended September 30, 2012 as against a net loss of Rs 166 crore in the same quarter last year Fortis HealthCare Ltd, the owner of multi-speciality hospital chain, fell 1% after consolidated net loss widened to Rs 28.43 crore for the quarter ended September 30, 2012 over the same period last fiscal. Ponni Sugars (Erode) has locked in 10% upper circuit at Rs 380, also its record high, after reporting almost two-fold jump in net profit at Rs 10.66 crore for the second quarter ended September 2012. The Chennai-based sugar company had profit of Rs 5.97 crore in year ago quarter. Suzlon Energy Ltd, fell 1.3% after the company reported a consolidated loss of Rs 808 crore for the second quarter, amidst the challenges of debt restructuring and a weak macro-economic outlook United Breweries (Holdings) has locked in 5% lower circuit at Rs 129 after the company said its promoters have sold more than 7% of their stake in the company through off market deal. United Spirits has soared 24% to Rs 1,690 in opening deals on the Bombay Stock Exchange after British liquor giant Diageo Plc have made an open offer to acquire 26% shares held by the public at price of Rs 1,440 per share Market breadth is negative with 1167 stocks declining compared to 1132 advances on the BSE.