Capital goods shares dip post June IIP numbers

Capital Goods index has lost almost 166 points from intra-day high after the announcement of IIP numbers.

Shares of capital goods companies have erased their early morning gains and are currently trading lower by 1-3% after capital goods sector witnessed a degrowth of negative 27.9% in June 2012 versus positive 38.7% recorded in June 2011. The manufacturing, which constitutes about 76% of industrial production, contracted to -3.2% in June 2012 from 2.5% in May 2012 and 10% in June 2011.

Meanwhile, the index of industrial production (IIP), a key measure of industrial output, fell 1.8% in June 2012 from a year earlier, while it’s much lower than 2.4% growth reported in the month of May. Analysts expected a 1% growth for June.

 

The BSE, capital goods, the largest lower among sectoral indices, is down 84 points or 1% at 9,783. The index has lost almost 166 points from intra-day high of 9,948 after the announcement of IIP numbers.

Among the individual stocks, Larsen and Turbo, BHEL,Siemens, Crompton Greaves, Punj Lloyd, BEML and ABB are down more than 1% each at 1150 hours.