Post session - Quick review

Overlooking better than expected January factory output data, investors remained worried about elevated Inflation data, which in turn scaling down rate cut hopes weighed down on rate sensitives’, leading to downfall in Indian equity markets. In absence of positive global cues, benchmarks  indices after witnessing consolidation in the previous trading session, surrendered some ground today, as market-men remained cautious ahead of February WPI data, a key data print which would help in giving some direction on RBI’s stance in its upcoming monetary policy on March 19. Meanwhile, in a pleasant surprise, India's annual industrial output growth measured by index of industrial production (IIP) grew by 2.4%, it’s highest since October. However, the enthusiasm sensed on account of this, soon receded after country's annual consumer price based inflation (CPI) accelerated to 10.91 per cent in February from the previous month, thereby remaining over 10 percent for the third consecutive month.

Thus, in yet another lackluster session of trade, Sensex lost close to half a percent, to settle sub 19600. However, Nifty, despite losing similar portion of ground, settled above the 5900 level, which turned out to stiff resistance for the barometer gauges as any attempt beyond this level was reciprocated with recovery. Broader indices too capitulating to selling pressure ended in the red zone.

On the global front, Asian pacific shares ended down in dumps, with Strait Times, turning to be an exception, as investors turned cautious over recent gains, pocketing gains. Further concerns over the global economic outlook gripped after Chinese data released over the weekend showed consumer inflation accelerated sharply in February and Industrial production slowing to the lowest level since October 2009. Meanwhile, European shares too were trading lackluster.

Closer home, downfall in Indian equity markets was led by the massive selling in Consumer Durable, Power and Realty counters. Banking shares also surrendered to the selling pressure on the scaled back hopes of rate cut on account of higher CPI data. On the flip side, defensive Fast Moving Consumer Goods counters turned out be the only gainer. Additionally, sugar stocks too lured some traction on reports that government is likely to consider a proposal on sugar decontrol this week. Stocks, like Bajaj Hindusthan, Dhampur Sugar Mills and Sakthi Sugars, had all scooped up gains in the range of 1.5-4% each. The market breadth on the BSE ended negative; advances and declining stocks were in a ratio of 1212: 1678 while 131 scrips remained unchanged. (Provisional)

The BSE Sensex lost 110.53 points or 0.56% and settled at 19535.68. The index touched a high and a low of 19697.84 and 19505.75 respectively. 7 stocks were up, while 23 stocks declined on the index (Provisional)

Broader indices concluded in red; BSE Mid cap and Small cap indices were up by 0.70% and 0.51% respectively. (Provisional)

On the BSE Sectoral front, Consumer Durables down by 1.88%, Power down by 1.46%, Realty down by 1.30%, Bankex down by 1.10% and Metal down by 0.86%, were the top losers, while FMCG up by 0.54% was the sole gainer in the space.

The top gainers on the Sensex were Hindustan Unilever up by 1.00%, Tata Motors up by 0.73%, Jindal Steel up by 0.68%, ITC up by 0.62% and RIL up by 0.20%. On the flip side  Tata Power down by 3.12%, Bharti Airtel down by 2.42%, BHEL down by 2.09%, HDFC Bank down by 2.06% and Sterlite Industries down by 1.55% were the top losers on the Sensex. (Provisional)

Meanwhile, in a pleasant surprise, India's annual industrial output growth measured by index of industrial production (IIP) grew by 2.4% at 181.8 for the month of January 2013 against contraction of 0.6%, later revised to -0.5% in the previous month. The numbers were way above the street expectations of over 1% growth figure. The cumulative growth for the period April-December 2012-13 over the corresponding period of the previous year stood at 1%.

The three sectors constituting the index showed marked improvement as compared to the December figures. Manufacturing sector, which constitutes about 75.53 percent of industrial production, expanded by 2.7% from a year earlier and also higher than contraction of 0.7% in the previous month. Mining sector, which constitutes about 14.6 percent of industrial production, after witnessing massive contraction of 4.0% (y-o-y) in the previous month, yet again showed contraction, narrowed at 2.9% in January.

Meanwhile, electricity sector, showcasing growth rose to 6.4% from a year earlier and also higher against 5.2% in the previous month. Cumulative growth in the three sectors during April-January 2012-13 over the corresponding period of 2011-12 has been (-) 1.9%, 0.9% and 4.7% respectively.

However, Capital goods output, a key investment indicator, stood at -1.8% against -0.9% in December. Consumer goods grew by 2.8% against massive contraction of 4.2% in the previous month, driven by growth of Consumer durables and Consumer non-durables at -0.9% and 5.3% respectively.

Interestingly, output in the country's eight key infrastructure industries, also known as the core sector and accounting for almost 40% of factory production, grew an annual 3.9% in January, in yet another sign that the economy was improving.

India VIX, a gauge for markets short term expectation of volatility gained 6.17% at 15.13 from its previous close of 14.25 on Monday. (Provisional)

The S&P CNX Nifty lost 36.80 points or 0.62% to settle at 5,905.55. The index touched high and low of 5,952.00 and 5,893.65 respectively. 11 stocks advanced against 39 declining on the index. (Provisional)

The top gainers on the Nifty were Ranbaxy up by 2.47%, Ambuja Cements was up by 1.50%, ACC was up by 1.12%, Hindustan Unilever was up by 0.95% and Tata Motors was up by 0.93%. On the other hand, Cairn down by 3.24%, Tata Power down by 3.11%, BHEL down by 2.34%, Bharti Airtel down by 2.21% and Siemens down by 2.01% were the top losers. (Provisional)

Most of the European markets were trading in red, France’s CAC 40 down by 0.26% and Germany’s DAX down by 0.04% while the United Kingdom’s FTSE 100 up by 0.08%.

Reversing their initial rally, most of the Asian equity indices shut shop in the negative terrain as the strong performance in the United States was slightly overshadowed by disappointing economic data from China. The soft Chinese industrial production and retail sales figures stoked some concerns that the recent pick-up in the country’s growth rate may have stalled. In addition, higher-than-expected inflation of 3.2 percent in February raised questions about the government's ability to do more to shore up the world's second-largest economy.

Jakarta Composite remained shut for the trade today.