Bourses come off from the high point of day as knee jerk reaction to sluggish IIP figures

Firm bourses came off from the high point of the day as a knee jerk reaction to the outcome of February months’ Industrial productivity data, which grew at sluggish rate of 4.1% as against the median forecast of 6.7% for the same month. Growth in factory output was at 6.8% in January 2012, due to improvement in the manufacturing sector.

The barometer 30 share index of Bombay Stock Exchange (BSE)-Sensex- after piercing through the 17250 psychological level, currently retreated off it. However, the same was with broader indices, which pared gains in line with the frontline indices. The widely followed index of National Stock Exchange (NSE)-Nifty- however, too dipped its head sub 5250 bastion, post the release of the data, only to recuperate later.

Stocks from Capital Goods, Power and Bankex space counters were the ones to lead the market from the front, however, stocks from Health Care and Information Technology counters depicted underlying weakness. Robust growth of 10.6% posted by Capital Goods sector for the month of February against the-1.5%contraction in January, mainly heaved CG stocks higher. The overall market breadth on BSE was in the favour of advances which thumped declines in the ratio of 1569:632, while 101 shares remained unchanged.

The BSE Sensex is currently trading at 17,314.85, up by 115.45 points or 0.67%. The index has touched a high and low of 17,366.47 and 17,276.87 respectively.   There were 24 stocks advancing against 6 declining ones on the index.

The broader indices too pared some gains in line with frontline indices; the BSE Mid cap and Small cap indices were up by 0.95% and 1.15% respectively.

The top gaining sectoral indices on the BSE were, CG up by 1.14%, Power up by 1.11%, Bankex up by 1.10%, FMCG up by 0.92% and Metal up by 0.89%. While, HC down by 0.18% and IT down by 0.09% were the lone loser on the index.

The top gainers on the Sensex were Hindalco up by 2.21%, Maruti Suzuki up by 2.14%, BHEL up by 2.09%, Hero MotocCorp up by 2.04% and SBI up by 1.84%. On the flip side, Sun Pharma down by 0.61%, TCS down by 0.39%, Wipro down by 0.27%, ONGC down by 0.17% and Infosys down by 0.16% were the only losers on the Sensex.

Meanwhile, India's annual industrial output growth measured by index of industrial production (IIP) with an updated base of 2004-05, has fallen behind all estimates as it expanded at 4.1% pace in February, 2012 to 174.9, as compared to 177.9 in the January, 2011. The cumulative growth for the period April-February 2011-12 stands at 3.5% over 8.1% in the corresponding period of the previous year.

According to the data released by Central Statistics Office, the IIP for the Mining, Manufacturing and Electricity sectors for the month of February 2012 stand at 134.8, 186.5 and 145.1 respectively, with the corresponding growth rates of 2.1%, 4.0% and 8.0% as compared to February 2011. The cumulative growth in the three sectors during April-February, 2011-12 over the corresponding period of 2010-11 has been (-)2.1%, 3.7% and 8.7% respectively, which moved the overall growth in the General Index to 3.5%.

As per use-based classification, the growth rates in February 2012 over February 2011 are 7.5% in Basic goods, 10.6% in Capital Goods and (-) 0.6% in Intermediate goods. The Consumer durables and Consumer non-durables have recorded growth of (-) 6.7% and 5.1% respectively, with the overall growth in Consumer goods being (-) 0.2%.

Meanwhile to everyone’s shock, the IIP numbers for the month of January have been revised to 1.1% from 6.8%. The IIP for January 2012 has been revised from 187.9 to 177.9 and, therefore, growth rate over the corresponding period of previous year has been revised from 6.8% to 1.1% 

The S&P CNX Nifty is currently trading at 5,274.40, higher by 47.55 points or 0.91%. The index has touched a high and low of 5,275.15 and 5,246.75 respectively.  There were 42 stocks advancing against just 8 declines on the index.

The top gainers of the Nifty were Hindalco up by 2.66%, Hero MotoCorp up by 2.59%, Maruti Suzuki up by 2.48%, IDFC up by 2.37% and BHEL up by 2.33%.

On the flip side, Dr Reddy down by 1.63%, Cairn India down by 1.02%, Sun Pharma down by 0.92%, Wipro down by 0.52% and Ranbaxy down by 0.49% were the major losers on the index.

Most of the Asian equity indices were trading in the positive terrain; Shanghai Composite gained 0.95%, Hang Seng added 0.61%, Jakarta Composite and KLSE Composite were up by 0.24%, Nikkei 225 rose 0.40%, Straits Times expanded 0.69% and Taiwan Weighted lured 0.11%.

On the flip side, Seoul Composite down by 1% was the lone loser in the Asian region.