Nifty ends below 5800 on disappointing IIP nos
11 Apr 2011
Indian equity benchmarks extended losses on Monday for the fourth consecutive session. Lower than expected industrial output data and rising crude oil prices led the investors as well as traders to get into major profit booking today.
The 50-share NSE Nifty fell 56.30 points or 0.96%, to settle at 5,785.7 as more than 35 shares declined out of 50. Oil & gas, auto, realty, metal, select financial and technology companies' shares dragged the markets down.
The biggest negative right now is the crude price, says Sanjiv Patni of Prabhudas Lilladher. "Unless we see resolution on that count it is going to be impacting the sentiment in the market." London Brent crude was trading around USD 125.5 a barrel, down more than a dollar.
"A lot will depend upon how the flows pan out actually going forward. I do not really think market is going to correct a lot from here. It will be more or less remain range bound for some time until we have the complete feel of what are the factors which are going to be playing out."
Index of Industrial Production grew at 3.6% for the month of February as against 3.9% in January, lower than the expected 4.85% growth.
"IIP growth was supported by a healthy performance of the consumer goods sectors, while a sustained contraction in capital goods for the third consecutive month dampened the overall pace of IIP growth," Aditi Nayar, Economicst at ICRA said.
