Close to 380 points fall on the Sensex has confirmed that the short-term rally is now over. Factors spreading the negative sentiment included worse-than-expected industrial production date, continuous fall in rupee and a very real Eurozone scare. The 30-share BSE Sensex was trading at 16,486, down 380 points and the 50-share NSE Nifty was trading at 4,939, down 120 points.
The Index of Industrial Production (IIP) growth for the month of July, 2011 saw a sharp decline at 3.3% compared to 8.8% in the previous month. The IIP growth for the April-June quarter was at 5.8% compared to 9.7%, year-on-year (YoY). The dismal number was mainly on account poor performance by capital goods, manufacturing and mining sectors, reflecting sluggishness in the economy.
The rupee touched a fresh one-year low as dollar strengthened. It was at 46.97 as against US currency while its September contract hit 47/USD on the MCX-SX.
Not a single sector was trading in the green on BSE. Metal, IT, Bank and Capital Goods indices were down 2.5-3%.
Among largecaps, TCS, Reliance Industries, Bharti, Infosys, SBI, ICICI Bank, L&T and Wipro plunged 2-3.5%.
However, HUL shot up 3.5%. Ambuja Cements, Cipla and Grasim were other gainers.
SBI, GTL, Pipavav Shipyard, Reliance Industries, TD Power System, L&T and ICICI Bank were most active shares on exchanges.
Among midcaps, Pipavav, GTL, Financial Tech, Marico and Hindustan National Glass rallied 3-6% while Sujana Towers, IVRCL, S Kumars Nationwide, Indiabulls Real and Jai Corp fell 5-9%.
In the smallcap space, MSP Steel, Gokaldas Export, Falcon Tyres, Ontrack Systems and Seshasayee Paper were up 5-9%. However, Dion Global, Parenteral Drug, aurionPro Solutions, Madhucon Projects and Petron Engg lost 7-10%.
About three shares declined for every share gaining on BSE.
On the global front, Hang Seng crashed 4%. Nikkei and Taiwan fell 2-2.7%.
At 11:08 hours IST : Dismal IIP data, falling Re send Sensex down over 350 pts
Indian equities cracked further ground after the announcement of disappointing industrial output data. Depreciating rupee too added to the injury as FIIs scurry to offload exposure to the Indian markets. The 50-share NSE Nifty tanked 111 points to 4,947 and the 30-share BSE Sensex lost 354 points to 16,512.
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