Sensex down 150 pts; IIP data eyed

Heavyweights like ICICI Bank, Tata Motors, TCS, ITC and RIL weigh on the indices

Markets extended losses in the morning deals as weakness in heavyweights like ICICI Bank, Tata Motors, TCS, ITC and RIL continue to weigh on the benchmark indices. At 1030 hrs, the Sensex was down 152 points at 21,019 and the Nifty gave off 46 points trade at 6,261.

Also, the Index of Industrial Production (IIP) data which will be released today may show a contraction in the factory output in October. A Reuters poll of 26 economists suggested that the industrial activity shrank 1.2% in October. This may pose a worry for the government who are relying heavily on a second half recovery in the economic activity across all the sectors.

However, broader markets improved and both the mid and smallcap indices were turned flat with a positive bias, both outperforming the BSE benchmark index which was down 0.7%.

Tata Power up 2.5%, BHEL and Gail India up 0.2% each were the only gainers among Sensex-30.

NTPC, HDFC and ONGC pared off its morning losses and were flat with a positive bias.

The advanced decline ratio continued to remain negative. 852 stocks declined while 724 stocks advanced on the BSE.

The rupee was lower at 61.65/66 versus its previous close of 61.245/255 on Wednesday, boosted by weakness in local and regional shares.

In individual stocks, Infotech Enterprises surged 5% to Rs 321, also its record high on the BSE, on heavy volumes.

Shares of Finolex Group companies such as Finolex Industries and Finolex Cables are in demand, trading at their 52-week highs, in otherwise subdued market.
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(Updated at 1030 hrs)
Markets started in the negative following weak global cues with the Sensex down 94 points at 21,077 and the Nifty slipped 29 points to trade at 6,281 in the opening trades.

The ones weighing on the indices were ICICI Bank, L&T and Tata Motors.

Broader markets were marginally in red, with the midcap index down 0.1% and the smallcap index was flat with a negative bias.

Asian shares slipped to a 2-1/2 month low on Thursday on heightened expectations the Federal Reserve may act sooner than later to unwind its stimulus after a provisional budget deal in Washington eased some of the fiscal drag on the U.S. economy.

MSCI's broadest index of Asia-Pacific shares outside Japan fell 1%, adding to Wednesday's 1.1% decline -- its sharpest one-day fall in three weeks.

In Tokyo, the benchmark Nikkei tumbled 1.6%, extending declines into a third day. Still, the index, powered by Tokyo's aggressive fiscal and monetary stimulus, has rallied nearly 47% so far this year, on track for its best yearly gain since 1972.

Overnight in US, stocks posted their largest drop in a month on Wednesday as traders locked in recent gains after a provisional budget deal out of Washington removed one of the near-term reasons for the Fed to keep up its current pace of economic stimulus.

Last September, the Fed cited the possibility of a hit to the economy if lawmakers didn't agree on a budget as one reason to maintain its $85-billion-a-month bond-buying program.

The Dow Jones industrial average fell 0.81%, to end at 15,843. The S&P 500 slid 1.13%, to close at 1,782. The Nasdaq Composite dropped 1.4%, to finish at 4,004.

Back home, all the sectoral indices were in the red with a cut of atleast 0.1%.

Bankex, Metal and Capital Goods indices down 1% each were the major sectoral losers followed by Health Care, IT, Teck, Auto, Oil & Gas and Power indices down 0.5-0.9%.

Gail India up 0.9% was the only gainer among Sensex-30.

Bharti Airtel, Bajaj Auto, Tata Motors, Hero MotoCorp, ICICI Bank, Coal India and L&T down 1.5-2 % were the major draggers.

Cipla, Tata Steel, Hindalco, Dr Reddys Lab, Jindal Steel, Sesa Sterlite, Sun Pharma, Wipro and Mahindra & Mahindra down 0.8-1% were the other prominent losers.

The market breadth was negative on BSE.  577 stocks declined while 445 stocks advanced.