D-STREET UNDER PRESSURE

Turbulence seems to be incessant for Indian equity markets, which for the fourth consecutive session are trading under the weather, with cut of close to half a percentage points on Friday. Although, barometer gauges in comparison to early deals, have not virtually moved anywhere, however the existence of losses, itself is an indicator of somber sentiment. Sideline behavior of market-men, ahead of the release of IIP numbers is also putting barometer gauges in standstill mode. The street expectation is that industrial production (IIP) has likely grown around 1.5 percent year-on-year in March, significantly lower than February's 4.1 percent.

On the global front, spooked by JPMorgan's $2 billion huge loss from a failed hedging strategy, Asian shares retreated on Friday, as investors warily watched political turmoil in the euro zone as they awaited new Chinese data for clues on its growth outlook. The US future indices continued to show a downtick in the screen trade. Back home, although selling was broad based, however, stocks from Realty, Auto and Healthcare counters undergoing major torment, dragged the 30 scrip sensitive index of Bombay Stock Exchange (BSE)-Sensex- below its 16400 level, also its new four month's low. The widely followed 50 share index of National Stock Exchange (NSE)-Nifty-too continued to trade sub 5000 mark. However, the broader indices managed to lose some ground in comparison to early deals.

Meanwhile, the Index of Industrial Production (IIP), a key measure of industrial output, contracted at an astonishing -3.5% in March versus 4.1% in the month of February. This is the first fall in IIP since October 2011, when it declined 4.7 per cent. Manufacturing declined 4.4 per cent, while mining fell 1.3 per cent. Electicity grew at 2.7 per cent.

The BSE Sensex is currently trading at 16,345.25, down by 74.80 points or 0.46%. The index has touched a high and low of 16,395.12 and 16,305.29 respectively.  There were 10 stocks advancing against 20 declines on the index. The overall market breadth on BSE was in the favour of declines which thrashed advances in the ratio of 1222:696, while 95 shares remained unchanged.

The broader indices too enticed some additional weakness; the BSE Mid cap and Small cap indices declined 0.70% and 0.66% respectively.

Selling was broad based, however, the major losing sectoral indices on the BSE were, Realty down by 0.98%, IT down by 0.91%, HC down by 0.89%, TECk down by 0.79% and FMCG down by 0.75%.

The top gainers on the Sensex were Hero MotoCorp up by 1.58%, Jindal Steel up by 1.46%, Bajaj Auto up by 1.07%, BHEL up by 0.96% and Wipro up by 0.58%.

On the flip side, Maruti Suzuki down by 2.48%, Infosys down by 1.79%, ONGC down by 1.71%, Sun Pharma down by 1.59% and DLF down by 1.45% were the top losers on the Sensex.

Meanwhile, economic growth in India and other Asia Pacific countries is expected to be better as compared to the rest of the world, as per a UN Report. In fact the Asia Pacific region will be an anchor of stability and a new growth pole for the world economy.

Growth for Indian economy has been projected at 7.5% in 2012, up from 6.9% in the last fiscal year. The Indian economy's strong fundamentals, namely high saving and investment rates, rapidly expanding labour force and middle class will ensure a steady economic performance. Infact indicators are pointing to the fact that the economy is turning around and core sectors, including manufacturing, are showing signs of recovery. It may be noted that the government data has pegged the growth for FY'13 to be around 7.6%.

The major impediment to growth will be the reduced demand in the region's traditional export markets of US and Europe together with higher capital costs and loose monetary policies of some advanced economies.

Inflation in India is expected to remain around 6.5% in 2012. The slower growth is expected to moderate inflation. The report has further observed that in line with increased prosperity, the food habits of consumers have been changing from cereals to proteins, fruits and vegetables, and to contain food inflation, supply of these items has to be enhanced. As per latest official data, overall inflation at the end of March was 6.89%.

The S&P CNX Nifty is currently trading at 4,941.70, lower by 24.00 points or 0.48%. The index has touched a high and low of 4,954.05 and 4,924.95 respectively. There were only 13 stocks advancing against 37 declines on the index.

The top gainers of the Nifty were Jindal Steel up by 1.65%, Hero MotoCorp up by 1.52%, JP Associates up by 1.41%, BHEL up by 1.12% and Bajaj Auto up by 1.05%.

On the flip side, Maruti Suzuki down by 2.43%, Ambuja Cement down by 2.22%, ACC down by 1.89%, Sun Pharma down by 1.79% and SAIL down by 1.73% were the major losers on the index.

All the Asian equity indices were trading in the red; Shanghai Composite declined by 0.25%, Hang Seng plunged 1.16%, Jakarta Composite shed 0.77%, KLSE Composite lost 0.07%, Nikkei 225 slid 0.45%, Straits Times shed 0.76%, KOSPI Composite plunged 1.29% and Taiwan Weighted plummeted 1.13%.