New Delhi: The gloom is back and this time it is in the form of weak IIP (Index of Industrial Production) numbers. The slower than expected rise in February industrial output led to a weak closing for Indian stocks. The index for Industrial Production rose at 3.6% in February this year. Economists were expecting the IIP to grow at 5%.
Slower growth in the manufacturing segment led to concerns that growth in the domestic economy might be slowing down. Higher crude prices are also casting a shadow on sentiment. After hitting $127, Brent crude oil prices eased to $126 a barrel after Gaddafi accepted a roadmap to end violence in Libya. (Read more)
Sensex: 19,262 –0.97%
Nifty: 5,785 –0.96%
Except for Healthcare and FMCG, all sectoral indices closed with losses on the BSE. With high crude oil prices bringing back fears of inflationary pressures, interest rate sensitive stocks led the losses on the BSE.
BSE Realty: 2,402 –2.52%
BSE Auto: 9,194 –2.15%
BSE Oil & Gas: 9,928 –1.59%
BSE Capital Goods: 13,594 –1.07%
Real estate stocks continued to witness selling pressure. Investors sold real estate stocks on concerns that further rate hikes by the RBI might hurt demand.
Sunteck Realty: Rs 344 –9.75%
Sobha Developers: Rs 298 –4.19%
Unitech: Rs 44 –3.55%
DLF: Rs 250 –3.51%
Stocks of capital goods firms also witnessed a sharp fall. The sector fell 18.4% in February IIP numbers. The fall comes after an 18.8% decline in January.
Siemens: Rs 841 –5.66%
Usha Martin: Rs 57 –3.70%
Gammon India: Rs 120 –3.33%
Punj Llyod: Rs 72 –2.49%
Overall it was a bad day for the Indian stock markets. Six of every 10 stocks that traded on the BSE closed the day with losses.