Markets slump after disappointing March IIP data

FMCG, Capital Goods shares top losers

Markets have drifted lower in late morning trades after disappointing March Index of Industrial Production data. According to the release, March IIP data was at -3.5%. The Sensex was down  142 points at 16,278 and the Nifty fell 47 points to 4,919.

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(Updated at  9:45am)

The markets are trading lower in the opening trades tracking weak Asian cues and selling among Oil & Gas and Technology segments. At 9:45, the 30-share Sensex was at 16,362 down 58 points and the 50-share Nifty was at 4,944 down 22 points.  
 
The rupee movement and the IIP data for March due later today will also be keenly watched. Global stocks advanced for the first time in seven sessions on Thursday on relatively encouraging US jobs data.

The Dow Jones industrial average closed up 0.2% at 12,855, while the Standard & Poor's 500 Index rose 0.3% to 1,358.

Asian shares, however, retreated on Friday, spooked by JPMorgan's $2 billion huge loss from a failed hedging strategy. MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.3%, while Japan's Nikkei share average opened up 0.1%.

Back home, the Nifty is likely to seek support around 4,930-4,910, while it can face resistance around 5,000-5,020, analysts say.

On the sectoral front, BSE Oil & Gas, Realty and Technology indices have declined between 0.5-0.7% followed by counters like Realty, FMCG, Healthcare, Metal, PSU, Consumer Durable, Banks and Power, all slipping marginally. However, Capital Goods, Power and Auto are trading marginally positive.

Maruti Suzuki is the top Sensex gainer, down over 2%.

From the Oil & Gas space, index heavyweight Reliance Industries has declined over 0.5%. ONGC has dipped by nearly 1%.

DLF from the Realty segment has slipped by 1%. DLF has set up a core team of five to six people to focus on the process of sale of non-core assets, reports suggest.

Other notable losers include Sun Pharma, Infosys, M&M, Tata Power, Hindalco, Coal India, ITC, Bharti Airtel and TCS, all declining between 0.5-1%.

On the gaining side, Auto shares are witnessing some buying interest. Bajaj Auto is the top Sensex gainer, up over 1%. Hero Moto and Tata Motors have gained by almost 1%.

The BSE-Mid cap Index and the BSE-Small cap are trading marginally lower.

Among other shares, SKS Microfinance has rallied 19% to Rs 106 after India's largest micro-lender announced its decision to reduce headcount by 1,200 employees and close down 78 branches in Andhra Pradesh.

The market breadth was weak with 847 declines and 598 gainers.