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Markets shed 1% as output data disappoints

Markets shed 1% as output data disappoints
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First Published: Tue, Oct 12 2010. 11 23 AM IST
Updated: Tue, Oct 12 2010. 11 23 AM IST
Mumbai: Shares extended losses to 1% on Tuesday morning, as August industrial output rose at a much slower-than-expected 5.6% from a year earlier, and on weak regional peers.
At 11:19am, the 30-share BSE index was down 1.05% at 20,126.95 points, with 24 components declining. The 50-share NSE index dropped 1.1% to 6,065.80 points.
August industrial output growth in Asia’s third-largest economy probably slowed down to an annual 9.65% from the previous month, the median forecast of 20 economists showed. The data is expected at 11:00am.
“At current levels, all possible positives seem to be priced in. Only if the output data surprises big time on the positive end, the market will cheer it,” said Arun Kejriwal, director of research firm KRIS.
At 9:34am, the 30-share BSE index was down 0.56% at 20,225.14 points, with 23 of its components falling. Financials led the decline.
The benchmark is up nearly 16% in the year to date, as global investors allocated funds to emerging equities such as India while developed markets faced a slowdown.
Foreign funds have pumped a record $21.4 billion into Indian shares this year.
Financials dropped as traders booked profits after the recent rally. The banking sector index was down 0.4%, but is up more than 41% so far in 2010.
Top lender State Bank of India was down 0.7% while rival HDFC Bank shed nearly 1%. Mortgage lender Housing Development Finance Corp declined 2.1%.
Vehicles maker Tata Motors raced 0.9% after the Economic Times reported it was planning to launch a new car aimed at taking on Alto manufactured by leading car maker Maruti Suzuki India. Maruti Suzuki shed 0.4%.
In the broader market, losers led gainers in a ratio of 1.2:1 while 83 million shares changed hands on the BSE.
The 50-share NSE index was down 0.7% at 6,039.15 points.
Elsewhere, the MSCI’s measure of Asian markets other than Japan was down 1.5%, while Japan’s Nikkei fell 1.7%.
STOCKS
Tecpro Systems debuted at Rs425, up 19.7% on its issue price of 355. The material handling and engineering, procurement and construction firm extended gains and was trading at Rs426.15.
Apparel maker Cantabil Retail India listed at a discount of 4.3% to the issue price of Rs135 and dropped further to Rs117.65.
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First Published: Tue, Oct 12 2010. 11 23 AM IST
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