Markets languish post GDP data

FMCG, auto and metal shares drag

Markets continued to trade in the negative zone, following soft cues from global bourses. However, the Sensex is off the day's low of 17,430 and is now down 71 points at 17,470. Nifty is down 31 points at 5,284.

India's economy grew at a higher-than-expected 5.5% in the quarter ending in June, against analysts' forecasts of 5.3%, government data showed on Friday.

The manufacturing sector grew an annual 0.2% during the quarter, while farm output rose 2.9%, the data showed. In the quarter ending in March, economic growth was at 5.3%.

The rupee declined by 9 paise to 55.72 against the dollar in early trade today at the Interbank Foreign Exchange on increased demand from oil importers for the American currency.

Meanwhile, Credit Suisse has come out with a detailed analysis of the first quarter numbers of Nifty companies. Sales growth of Nifty companies was 18 per cent YoY, the lowest since December 2009. But for better numbers by financials and benefit of rupee depreciation for IT and pharmaceutical companies, the growth number would have been lower.

Most of the sectoral indices languished in red. BSE power index was down 1% at 1,876. Auto, metal, FMCG, PSU, realty and IT indices declined 0.7-1% each. Meanwhile, broader markets outperformed. The BSE mid-cap index added 0.2% at 6,012. Small-cap index advanced 0.5% at 6,409.

FMCG stocks were the major draggers with ITC and Hindustan Unilever contributing 28 points to the Sensex's fall. Coal India was the biggest loser - down 2.5% at Rs 352. NTPC, Hindalco, Hero MotoCorp and Tata Motors slipped 1-2% each.  On the other hand, Cipla added 1.8% at Rs 379. HDFC advanced 1%, followed by Bharti Airtel and ONGC.

Vadodara based Alembic Pharmaceuticals has informed BSE that major part of the manufacturing operations at the company's Panelav plant has been restored. A major fire had broken out at around mid-night on August 26 at the active pharmaceutical ingredient -1 plant at Panelav. Shares of Alembic has gained 1% at Rs 70.

Arvind PD Glass Composites, a joint venture company set up by leading textiles company Arvind Limited and Germany’s PD FibreGlass Group, commissioned the first phase of its production facility to manufacture glass fabrics at Santej in the outskirts of Ahmedabad on Thursday. Arvind Ltd may come i focus following this news. The stock has slipped 1.8% at Rs 63.50.