As IIP contracts, Sensex slips into the red


    Mumbai, (IANS) A benchmark index for Indian equities Monday fell sharply in noon trade as reports came in that the industrial output had contracted to minus-5.1 percent.

    The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened at higher 16,354.96 points, was ruling at 15,994.44 points, around noon, 219.02 points or 1.35 percent down from its previous close at 16,213.46 points.

    The 50-scrip S&P CNX Nifty of the National Stock Exchange also was trading higher at 4,797.45 points, down 1.42 percent or 69.25 points from its previous close.

    India’s industrial production saw a staggering decline in October, with a negative growth of 5.1 percent in output mainly owing to huge fall in manufacturing and mining sectors.

    Manufacturing output registered a negative growth of (-) 6 percent, while mining activity declined to (-) 7.2 percent.

    Broader markets rose moderately with the BSE 500 index ruling 1.28 percent lower. The BSE midcap index was trading 1.05 percent down while the BSE small cap index was ruling 0.83 percent lower.

    Capital goods, power and metal scrips bore the brunt of the selling. Only one of the sectoral index, IT, showed modest gains out of the 13 indices on the BSE which were in the red.

    The market breadth was negative, with 787 stocks advancing and 1,581 on the decline. Another 113 were unchanged.

    There were only three gainers on the 30-scrip Sensex at this time: Wipro, Infosys and TCS. Among major losers were Bajaj Auto, NTPC, L&T and Hindalco.

    Asian markets were ruling mixed with investors cautiously welcoming a deal by European leaders to introduce tougher fiscal rules in a bid to save the Euro zone.

    The Japanese Nikkei was ruling 1.37 percent up at 8,653.82 points. Hong Kong’s Hang Seng was ruling 0.93 percent higher at 18,759.89 points.

    The Chinese Shanghai composite index was trading 0.89 percent lower at 2,294.67 points