HDFC, Maruti fall 2%; Sensex, Nifty weak ahead of IIP data
Selling pressure continues in the market as it prepares for a long weekend. The Sensex is down 131.09 points at 22584.24 and the Nifty slips 36.65 points to 6759.75. About 1122 shares have advanced, 937 shares declined, and 129 shares are unchanged. HDFC and Maruti Suzuki are down 2 percent while HUL, M&M and L&T are other laggards in the Sensex. Banks are weak ahead of index of industrial production (IIP) data to be announced in the evening. Industrial output in February is likely to improve to 0.34 percent compared to 0.1 percent in January, according to a CNBC-TV18 poll. The uptick in core data is resulting in some overall optimism. The economy is at a stage where 0.3 percent growth is looking like optimistic because April to January, the growth in industrial output was zero. Even for the last month January, the numbers for industrial growth are as low as 0.1 percent. Therefore, 0.3 percent looks better. In December the figure was minus 0.2 percent. Rupee hit a one week low of 60.3 per dollar due to weak global cues. Government bonds prices fell slightly as market participants avoided fresh heavy positions ahead of the RBI’s Rs16000cr gilt auction today. The dollar struggles to find support and is heading for its biggest weekly fall in 9 months. The benchmark US 10-year yield too has fallen to its lowest in nearly four weeks. In commodities, Brent drops towards USD 107/bbl on improving global supply outlook. Gold, meanwhile, heads to near 2.5 week highs on track for its best week in a month. Asian stocks are under selling pressure following heavy losses on Wall Street which have overshadowed benign Chinese consumer inflation data.