Markets trim early gains post January IIP numbers

Markets have trimmed early gains despite the announcement of better than expected Jan IIP numbers.

Industrial production (IIP), which includes output at factories, mines and utilities, rose an annual 2.4% in January after unexpectedly falling 0.6% in December.

By 1110, Sensex gained by 10 points at 19,656, and the Nifty down 2 points at 5,940 levels.

Retail inflation rises to 10.91% in February from 10.79% in January. Food prices for consumers rose 13.73% in February from 13.36% in January.

The rupee was higher in opening trades, tracking gains in Asian FX, positive regional stocks. It was quoted at 54.26/27 versus last close at 54.41/42.

BSE IT and Consumer Durable indices have declined by almost 1% each. However, BSE Oil & Gas index has gained by nearly 1%.

The main losers on the Sensex at this hour include Bajaj Auto, Bharti Airtel, Infosys, HDFC Bank and Tata Power whereas the gainers are HUL, RIL, Tata Motors, Hindalco and M&M.

Among other shares, Aanjaneya Lifecare has locked in lower circuit of 5% at Rs 232, nears to its historic low, after the pharmaceutical company said it has deferred the foreign currency convertible bond (FCCB) issue due to unfavorable market conditions. The stock had hit a low of Rs 224 on listing day, May 27, 2011 on BSE.

Finolex Industries has rallied 5.5% to Rs 102, its highest level since December 2010, on back of heavy volumes on both the stock exchanges.

MMTC has dipped 4.4% to Rs 284 ahead of the empowered Group of Ministers (eGoM) meeting today to decide on the base price for the share sale.

The market breadth in BSE remains positive with 1,166 shares advancing and 1,091 shares declining.