Markets fall on mixed economic data; DLF up 7%

Benchmark indices continue to trade weak after paring early gains, amid a broad selling pressure, as the decline in industrial production for second straight month in January and retail inflation peaking to a four-month high in February neutralised the boost generated by the passage of insurance bill.  
 
At 1:00PM, the 30-share Sensex was down 271 points at 28,658 and the 50-share Nifty was down 79 points at 8,697.  
 
In the broader market, both the BSE Midcap index and Smallcap index down around 0.3% each have performed better than the front-liners. Market breadth in BSE is negative with 1,666 declines against 903 advances.    

 

On the macro-economic front, industrial growth slowed to 2.6% in January, against 3.2% in December 2014. The combined consumer price index (CPI) data for rural & urban for February increased to 5.4% in February from revised 5.2% in January. Food items were major contributors to the CPI inflation increase in February 2015.
 
Meanwhile, foreign institutional investors were net buyers in equities to the tune of Rs 733 crore on Thursday as per provisional stock exchange data.
 
Buzzing Stocks
 
11 out of the sectoral indices of BSE are trading lower. BSE Auto, FMCG and Capital Goods indices, down around 1.2% are the top losers followed by BSE Bankex down 1% and BSE IT index, down 0.8%.

 
Shares of DLF has moved higher by 9% to Rs 162, bouncing back 12% from intra-day low on the National Stock Exchange (NSE), amid reports that the  Securities Appellate Tribunal (SAT) quashed the order passed by market regulator Securities and Exchange Board of India (Sebi) against the company for alleged non-disclosure of information during its initial public offering.

Profit-booking at higher levels has dragged financials and bank stocks. HDFC, SBI, ICICI Bank, HDFC Bank and Axis Bank have declined between 0.4% and 2%.  According to media reports, SBI will hold an online auction to sell-off repossessed property to minimise the losses from distressed loans.

Pharma stocks too are under pressure. Cipla, Dr Reddys Lab and Sun Pharma have declined 1%-2% each.
 
State-owned thermal power generator NTPC has received regulatory approval to issue Rs 10,307 crore worth of bonus debentures, the largest ever by an Indian company. The stock is trading 0.3% higher.
 
Capital Goods stocks are declining. L&T has lost 1.7% while BHEL is down over 2%. As per data on industrial production released yesterday, capital goods output increased by 12.6% in the month of January.
 
Metal shares are trading lower. Hindalco, Sesa Sterlite and Tata Steel have lost between 1% and 2% each.