Markets slip post IIP data

The markets slipped further after the government anounced the IIP data for the month of December. The Sensex touched the intra-day low of 17,295. However the markets regained some strength and recovered partially.

At 12.30 PM the Sensex was at 17,400 lower by 60 points and the Nifty was at 5211 down 14 points.

The IIP data for the month of December came in at 1.6% compared to 2.7% in November. The manufacturing sector growth was recorded at 1% compared to 19.6% during the previous year, electricity sector grew by 6% versus 5.4% and the capital goods sector growth came in at 13.7% versus 42.9%.

Meanwhile on the Sensex, Reliance Communication led the losers charts the stock was trading lower by 5% at Rs 91. Hindalco Industries, Tata Steel, Jaiprakash Associates, Reliance Infrastructure, Bharti Airtel, Mahindra & Mahindra and TCS were also among the losers lower by 2-4% each. On the other hand Sterlite Industries, NTPC, HDFC, Larsen & Toubro, ICICI Bank and Hero Honda were among the gainers.

BSE Metal index was the top loser on the sectoral front, the index was down 2.13% or 323points at 14,914 followed by Teck index down 1.3% or 47 points at 3548. Realty, IT and Oil & Gas indices were also among the losers lower by 1% each. PSU, power, capital goods, FMCG and auto stocks also reeled under the selling pressure. Bankex and Consumer Durable indices were trading marginally higher.

Hindalco, SAIL, Sesa Goa, Tata Steel, Jindal Saw, JSW Steel, NALCO and Jindal Steel and Hindustan Zinc were the top losers among the metal stocks. Shree Ashtvinayaka Cine Vision was the top loser among the teck stocks followed by Reliance Communication, Idea, Bharti Airtel, Tech Mahindra and TCS.

The broader markets were trading flat, the BSE mid-cap index added 3 points at 6292 and the small-cap index was up 14 points at 6295.

The overall market breadth was marginally negative as 1350 stocks declined while 1238 stocks advanced.