Weakness persists ahead of key eco data

Investors booked profits ahead of key economic data due for release today

Markets continued to remain weak in noon trades on Thursday as investors booked profit in index heavyweights ahead of the October Index for Industrial Production and November consumer price inflation due for release later today.

At 1PM, the 30-share Sensex was down 158 points at 21,013 and the 50-share Nifty was down 48 points at 6,259.

The Index of Industrial Production (IIP) data which will be released today may show a contraction in the factory output in October.

This may be a result of the high base in the same month last year and also due to sluggish performance by the eight infrastructure industries. The core sectors, which constitute around 38% of the IIP, contracted after eight months in October by 0.6% after growing at a high pace of 8% in the previous month.

In October last year, the IIP grew by a massive 8.4% -- a 16-month high at that time.

The retail price index-based inflation for the month of November, slated to be released in the evening today, is keenly watched as it comes ahead of RBI monetary review next week and a few days after the Congress faced drubbing in assembly elections.

The inflation had risen to 10.09% in October from 9.84% in September as the rate of price rise surged to 45.67% against 34.93%  over the  period.

The Indian rupee was trading weak due do fall in domestic equity indices and dollar demand from oil companies.

At 1PM the rupee was trading at Rs 61.58 compared with previous close of Rs 61.25 per dollar.

Asian shares extended losses on Thursday after better-than-expected economic data from the US raised concerns that the US Federal Reserve might start unwinding its monetary stimulus measures sooner than expected.

Japan's benchmark index the Nikkei ended lower for the third straight day. The Nikkei ended down 1.12% at 15,341.82. Among other indices in the region, Shanghai Composite, Hang Seng and Straits Times were down 0.2-0.5%.

The BSE Auto index was the top loser among the sectoral indices on the BSE down 1.4% followed by Bankex, Metal, Oil and Gas indices among others.

Tata Motors was down over 3% after its UK subsidiary Jaguar Land Rover (JLR) increased its capex guidance for the fiscal year ending March 2015 which is likely to strain the company's cash flows in near term.

In the banking pack, ICICI Bank and HDFC Bank were down 0.6-1.5% each.

Index heavyweight Reliance Ind was down over 1% on reports that the company may have to shell out $9 billion in bank guarantee if the Union Government proposes to allow increase in the price of natural gas.

Other Sensex losers include, ITC, ONGC and Bharti Airtel.

Among other shares, SKS Microfinance were up nearly 3% at Rs 177 after the company late Wednesday announced that it has completed a second securitisation deal worth Rs 80.81 crore for the current fiscal.

The BSE Mid-cap and Small-cap indices were trading flat with negative bias.

Market breadth was weak with 1,243 losers and 903 gainers on the BSE.