Markets regain some lost ground on better than expected IIP numbers

Following a weak start on the back of a lower earnings forecast by IT major Infosys, the Indian equity markets regained some lost ground as India's annual industrial output growth measured by index of industrial production (IIP) surprised the street, by registering growth of 2.7% at 165.7 for the month of August 2012 against the growth figure of 0.1% in the previous month. However, better than expected IIP numbers was not able to impress the market to a great extent as weakening global sentiment and a rising current account deficit remained main hurdles for next rate cut by central bank. The Sensex, which had drifted down by 100 points in early trades is currently marginally down by 2 points, while, Nifty index of the National Stock Exchange is up by 6 points. In currency markets, Indian rupee opened in positive territory but currently reversing all earlier gains depreciated against dollar in the late morning session. On sectoral front, realty, metal, power, bank and healthcare stocks were attracting buyers, while information technology stocks were down sharply. In global markets, most Asian stocks rose on Friday following another set of promising jobs data from the United States. Back home, the market breadth favoring positive trend; there were 1,508 shares on the gaining side against 920 shares on the losing side while 104 shares remain unchanged.

The BSE Sensex is currently trading at 18,801.77 down by 2.98 points or 0.02% after trading in a range of 18,844.35 and 18,696.10. There were 21 stocks advancing against 9 declines on the index.

The broader indices were trading in green; the BSE Mid cap and Small cap index were up by 0.89% and 1.00% respectively.

The top gainers on the BSE sectoral space were, CD up by 1.30%, Realty up by 1.28%, Metal up by 0.94%, HC up by 0.80% and FMCG up by 0.62%. While IT down by 2.05% and TECk down by 1.43% were the top losers on the sectoral space.

The top gainers on the Sensex were Jindal Steel up by 1.63%, Gail India up by 1.40%, Sterlite Industries up by 1.17%, M&M up by 1.16% and Tata Steel up by 1.12%. On the other hand, Infosys down by 4.76%, Wipro down by 1.16%, Bajaj Auto down by 0.41%, Sun Pharma down by 0.31% and ICICI Bank down by 0.28% were top losers on the Sensex.  

Meanwhile, India has imposed absolute anti-dumping duty on non-radial bias tyres that are used in buses and trucks from China and Thailand. This duty will be applicable for a period of 5 years.

The shift follows approval from the Designated Authority in the Commerce Ministry to continue anti-dumping duty on imports of non-radial bias tyres from Thailand and China. The anti-dumping duty will also be applicable on certain tubes and flaps.

In the case of imports from Thailand, the anti-dumping duty has been pegged at $0.86/kg, while from China pegged at $1.31/kg. The tyres produced by Hangzhou Zhongce Rubber Co., in China, the anti-dumping duty pegged at $1.12/kg.

The S&P CNX Nifty is currently trading at 5,714.25, up by 6.20 points or 0.11% after trading in a range of 5,725.00 and 5,659.35. There were 35 stocks advancing against 15 declines on the index.

The major gainers of the Nifty were ACC up by 4.31%, Ambuja Cement up by 3.78%, Lupin up by 2.70%, JP Associates up by 2.69% and Grasim up by 2.09%. While, Infosys down by 4.75%, Wipro down by 1.05%, IDFC down by 0.55%, L&T down by 0.51% and Bajaj Auto down by 0.29% were major losers on the index.

Most of the Asian equity indices were trading positive; Nikkei 225 was down by 0.15% and Taiwan Weighted was down by 0.20%, while Kospi Composite was up by 0.01%, Shanghai Composite was up by 0.16%, Hang Seng was up by 0.56%, Straits Times was up by 0.41%, Jakarta Composite up by 0.52% and KLSE Composite was up by 0.11% were the gainers.