Markets extend losses post April IIP, May CPI data

April IIP has come in at 2% and May CPI stands at 9.31%

Benchmark indices have extended losses after government data showed lower-than-expected index of industrial production for April and higher-than-expected May consumer price inflation data.

India's annual consumer price inflation slowed for the third straight month in May to 9.31 percent, government data showed on Wednesday.

Consumer prices rose an annual 9.39% in April.

Food prices for consumers rose an annual 10.65% in May, slightly faster than an annual rise of 10.61 percent in April.

The General Index for the month of April 2013 stands at 167.3, which is 2.0% higher as compared to the level in the month of April 2012. The cumulative growth for the period April-March 2012-13 over the corresponding period of the previous year stands at 1.1%     

Annual inflation rate based on all India general CPI (Combined) for May 2013 on point to point basis (May 2013 over May 2012) is 9.31 %. The corresponding inflation rates (provisional) for rural and urban areas are 8.98% and 9.65% respectively.

Inflation rates (final) for rural, urban and combined for April 2013 are 9.16 %, 9.73 % and 9.39% respectively.
 
At 1108, Sensex was down 84 points at 19,059 after hitting an intra-day low of 19,013 and the Nifty was down 22 points at 5,766 levels after touching a low of 5,752 so far.

FMCG major ITC was among the top Sensex losers down nearly 2% at Rs 329 on worries that lower purchasing power of consumers on the back of rising consumer price inflation would impact volume growth going forward.

Among other Sensex gainers, TCS was down nearly 2% amid profit taking after recent gains following the weakness in the rupee.

In the auto segment, Maruti Suzuki and Mah&Mah were down 1-1.8% after passenger car sales in the domestic market during May declined for a seventh consecutive month, with sluggish economic growth and high inflation and financing costs taking their toll on consumer demand. Hero MotoCorp and Bajaj Auto were also down 3% each.

The broader markets were trading marginally lower with the BSE Mid-cap down 0.3% and the Small-cap index down 0.1%.

Market breadth continues to remain weak with 1,096 losers and 837 gainers on the BSE.