Home / Market Beat / IIP data disappoints Diwali cheers.

IIP data disappoints Diwali cheers.

Markets have erased early gains in the wake of disappointing industrial output data that fell to negative 0.4 percent in September as against 2.3 percent in August and expectations of 3.2 percent due to degrowth in capital goods, consumer goods and manufacturing sectors. Even the August IIP revised to 2.3 percent as against 2.7 percent (provisional).

Sensex was down 42 points to 18,643 while the Nifty rose 8 points to 5,678.

Capital goods sector grew minus 12.2 percent in September as against minus 6.5 percent in a year ago period while manufacturing growth was minus 1.5 percent as against 3.1 percent. Consumer goods sector fell to minus 0.3 percent from 5.7 percent YoY.

Engineering conglomerate Larsen & Toubro and index heavyweight Reliance Industries were down 1 percent each.

Two-wheeler majors Hero Motocorp and Bajaj Auto dropped 1-1.4 percent. Top car maker Maruti Suzuki was down 1 percent.

Steel producer Tata Steel extended losses to 2 percent following lower than expected results in second quarter.

Cigarette major ITC, country’s largest lender State Bank of India and software services exporter Infosys slipped 0.4 percent.

Telecom operator Bharti Airtel and India’s biggest software exporter TCS gained 1 percent each.

Private sector lender HDFC Bank and commercial vehicle maker Tata Motors were up 0.5 percent. Shares of ICICI Bank and Hindustan Unilever moved up marginally.



Related Videos