IIP data pulls markets higher

The markets have recovered fully from its morning lows and are trading higher in the noon deals on back of the better than expected index of industrial production (IIP) data for the month of October 2010. The BSE benchmark index - Sensex - is up 220 points at 19,463 and Nifty is hovering at 5838, up 72 points.

The government announced the IIP data for the month of October, which came in at 10.8% compared to 10.1% during the same period of the previous year and 4.4% during the previous month. The manufacturing sector grew by 11.3% versus 10.8% year-on-year and the capital goods’ growth was recorded at 2.2%.

Meanwhile, Jaiprakash Associates leads the rally among the Sensex scrips, trading higher by more than 5% at Rs 105. ICICI Bank, Cipla, index heavyweight Reliance Industries and Jindal Steel have added more than 3% each. On the other hand, Bajaj Auto, HDFC Bank, Bharti Airtel and Tata Motors are the significant losers.

Buying is seen across all sectors barring IT. BSE Consumer Durables index is the top gainer among the sectoral indices. The index has added 176 points or 3.06% at 5939 followed by BSE banking index- Bankex up 308 points or 2.4% at 12,953 and Oil & Gas index has added 209 points or 2% at 10,380. The BSE tech index is trading marginally in the red, down 0.17% or 6 points at 3729.

Videocon Industries is the top gainer among the consumer durable stocks up 6% at Rs 211 followed by Gitanjali Gems, Blue Star, Bajaj Electricals and Titan Industries up more than 2% each. Among the Banking stocks Indusind Bank is the top gainer, the stock has added 6.4% at Rs 272 followed by Axis Bank, ICICI Bank, Yes Bank, IDBI Bank and Kotak Mahindra Bank higher by more than 3.5% each.

The broader markets have outperformed the benchmark indices, the mid-cap index is at 7447 up 188 points or 2.6% and the small-cap index is higher by 219 points or 2.5% at 8964. The BSE 500 market breadth is also extremely positive as 446 stocks are advancing while 52 stocks are declining.

S Kumar Nationwide Limited, Bayer Crop Scinces, KS Oils, Glodyne Technologies and Network18 Media are the gainers on the mid-cap index trading higher by more than 9% each. Among the Small-cap stocks Surana Industries is the top gainer up 20% at Rs 282 followed by Technofab Engineering, Sahara One, Elpro International and Brand Hous up more than 14% each.