Sensex ignores strong IIP numbers

Mumbai, June 12 (PTI) The Bombay Stock Exchange (BSE)
Sensex ignored good industrial growth for April on Friday as
realty, auto and consumer durables stocks pulled the barometer
down for the second consecutive day.

In high volatility, the Sensex Friday oscillated between
15,600.30, a fresh one-year intra-trade high, and 15,174.28,
before concluding at 15,237.94, a fall of 1.13 per cent from
its previous close.

Asian indices showed a mixed pattern of trading at the
end today while European markets resumed slightly lower.

The broader 50-share Nifty of the National Stock Exchange
(NSE) also dropped 54.30 points or 1.17 per cent to 4,583.40
from its last close.

Metal shares continued to attract good buying support,
buoyed by a fresh strong rally in prices on the London Metal
Exchange.

Stocks like realty, auto and consumer durables, which are
sensitive to interest rates, were at the receiving end after
recent decent rally on profit-booking.

SMC Global Vice-President Rajesh Jain said, "The market
did not react to positive IIP data as it is saturated at the
moment. Investors should not expect a rally for so long. It is
only a normal correction, which happened today. Going forward,
one can expect corrections in the market."

Contrary to market sentiment, foreign institutional
investors (FIIs) bought stocks worth Rs 787.57 crore in equity
on June 11, according to provisional data while domestic
institutional investors too were net buyers to the tune of Rs
558.14 crore on the same day.

Meanwhile, in what could be seen as an early sign of
recovery, the Index of Industrial Production (IIP) turned
positive for April at 1.4 per cent, after remaining negative
for months even as certain sectors like consumer non-durables
and capital goods continued to contract.

Of the Sensex scrips, Ranbaxy dropped 6.03 per cent,
DLF 5.80 per cent, Reliance Com 4.38 per cent, M&M 3.92 per
cent, Tata Motors 3.69 per cent, SBI 3.49 per cent, Wipro 3.14
per cent and Bharti Airtel 2.83 per cent.

However, RIL gained 2.48 per cent and Sterlite Ind 2.26
per cent.

The total market breadth remained negative as 2,020
counters ended with losses against 706 that closed with gains
on the BSE.

Among the sectoral indices, the BSE realty index plunged
93.38 points or 2.49 per cent, auto by 121.15 points or 2.41
per cent, capital goods 302.25 points or 2.27 per cent and the
Bankex 174.11 points or 2.12 per cent.

However, metals rallied by 231.75 points or 1.93 per cent
and oil and gas by 143.32 points or 1.38 per cent. PTI VMP
RAI
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