Stocks

Sensex shivers on output data, sheds 343 points

Our Bureau Mumbai | Updated on March 12, 2018

Dismal IIP numbers pulled the benchmark BSE Sensex down by 343 points on Monday. The mood in the market is quite sullen with investors, both retail and institutional, continuing to stay away from trading due to lower growth expectations and a weakening rupee.



The BSE Sensex and the NSE Nifty both opened up 0.8 per cent, but the optimism soon faded away post the announcement of the IIP numbers, which at 158.1 was at a two-year low. This is a drop of around 5.1 per cent from the corresponding month's numbers of last year (163.5).



Among others, stocks from the metals, banking, oil and gas, and PSU sectors took the most beating. The only sector that bucked the trend was information technology.



“The market was pulled down primarily by the IIP numbers. Further, expectation of lower GDP numbers coupled with depreciating rupee acted as dampeners. The target of more than 7 per cent GDP growth looks difficult at this point and the rupee is also expected to lose further ground,” said Mr. Prakash Diwan, Head of Institutional Client Group, Asit C. Mehta Investment Intermediates.



The Sensex lost 2.1 per cent or 343 points to close at 15870.35. The Nifty shed 2.1 per cent to close at 4764.6 (down 102 points).



“It is not at all advisable to take fresh positions in stocks,” said the head of research of another Indian brokerage. “Any positions taken on or after October 31, 2010, should be carefully examined for booking profits (if any) and losses.”



According to market men, the only thing that can turn the market sentiment will be reforms or policy initiatives either from the Government or the RBI.



Awaiting RBI move



With the RBI expected to announce the credit policy on December 16, all eyes will be on its stance. While an interest rate hike is not expected, a CRR cut is. A cut in Cash Reserve Ratio would inject more liquidity into the system and therefore will be a welcome move, said market analysts. Rupee hit an all-time low of Rs 52.84 to a dollar on Monday.

>sneha.p@thehindu.co.in



Published on December 12, 2011

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