Indian equity markets pared some early gains as India's annual industrial output growth measured by index of industrial production (IIP) disappointed the street, by registering a negative growth of 1.8% at 168.3 for the month of June 2012 against the growth figure of 2.4% in May, which later was revised a bit to 2.5%. However, lower than expected IIP numbers raised hopes for RBI rate cut, because of which the market has not suffered any significant setback as such. In currency markets, rupee opened higher on Thursday and currently holding early gains against dollar in the late morning session. On sectoral front capital goods stocks were drifting lower on selling pressure. Realty stocks were among the other notable losers. Power and oil & gas have shed most of their gains, while FMGC and IT stocks were holding early gains. In the global markets, Asian shares mostly edged up with Chinese inflation data lifting hopes for fresh easing measures by Beijing, but gains were limited as weak European data dented recent optimism. Back home, the market breadth favoring negative trend; there were 1,045 shares on the gaining side against 1,261 shares on the losing side while 148 shares remained unchanged.
The BSE Sensex is currently trading at 17,633.86, up by 33.03 points or 0.19% after touching a high of 17,702.98 and a low of 17,610.14. There were 21 stocks advancing against 9 declines on the index.
The broader indices were trading mixed; the BSE Mid cap index was up by 0.03%, while Small cap index was down by 0.07%.
The top gaining sectoral indices on the BSE were FMCG up by 1.13%, IT up by 0.88%, Auto up by 0.57%, Metal up by 0.55% and PSU up by 0.35%. While, CG down by 0.90%, Realty down by 0.51%, Oil & Gas down by 0.25% and Power down by 0.05% were top losers on the sectoral space.
The top gainers on the Sensex were M&M up by 3.08%, Sterlite Industries up by 2.51%, Coal India up by 1.97%, Maruti Suzuki up by 1.71% and Hindustan Unilever up by 1.70%.
On the flip side, Bharti Airtel was down by 4.19%, HDFC was down by 2.93%, Tata Motors was down by 1.43%, SBI was down by 1.41% and BHEL was down by 0.86% were the top losers on the Sensex.
Meanwhile, industry body, Federation of Indian Chambers of Commerce and Industry (FICCI) is not very confident about the manufacturing growth in the country. A survey released by it ahead of the release of the numbers for industrial production for the first quarter of 2012-13, states the lack of optimism among the respondents about high manufacturing growth in the second quarter, as against the previous round of survey.
According to the survey, which drew responses from 418 manufacturing units and associations, around 44% respondents felt that they expect growth to be higher in Q2 vis-a-vis last year as against 46% respondents saying so for previous quarter (Q1). Only 36%, 13% and 26% respondents in quarter four, three and two of 2011-12 respectively expected growth to be higher in manufacturing, as per previous surveys.
Also, over 67% respondents felt affected by the rupee depreciation in the last few months. The rupee depreciation has led to an increase in the cost of their imported raw materials and inputs by 5-25 per cent. As per the survey, demand conditions remained subdued in the economy for the manufacturing sector in Q2 as compared to previous quarters as only 31% respondents were having higher order books for July-September quarter.
On capacity utilization, the survey revealed that only 35% respondents reported higher utilization against 44% last year and 36% in previous quarter. This time only 28% respondents have reported plans for capacity addition against 38% desiring to do so during the last survey.
The employment prospects too remains weak as over 70% respondents did not report any plans for hiring new workforce in next three months, while only 30% reported that they are planning to increase their workforce in next 3 months.
Sectoral growth wise, in second quarter Chemicals, Food, Electronics, Textiles, Textiles Machinery, Paper and Capital Goods were having low expectation of growth, Steel & Metals and Automotive sectors were having moderate growth expectation, while Cement, Leather & footwear, Tyre and Machine Tools sector were expecting strong growth during second quarter.
The S&P CNX Nifty is currently trading at 5,345.70, up by 7.70 points or 0.14% after trading in a range of 5,368.20 and 5,339.15. There were 28 stocks advancing against 22 declines on the index.
The top gainers of the Nifty were M&M up by 3.10%, Sterlite Industries up by 2.55%, Coal India up by 2.04%, Grasim up by 1.85% and Maruti Suzuki up by 1.75%. On the flip side, Bharti Airtel down by 4.28%, HDFC down by 3.01%, Cairn down by 2.98%, Siemens down by 2.42% and Tata Motors down by 1.61%, were the major losers on the index.
All the Asian indices were trading in green; Kospi Composite Index up 1.74%, Nikkei 225 up 1.04%, Jakarta Composite up by 0.89%, KLSE Composite up by 0.17%, Taiwan Weighted up by 1.56% and Shanghai Composite up by 0.28% and Hang Seng up by 0.98%.
Straits Times remained closed on account of National Day holiday.
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