Indian Economy

India's Index of Industrial Production, in February slowed drastically to 3.6% from a 15.1% for the corresponding month last year, dragged down by poor performance of manufacturing, mining and capital goods sectors.

The growth was also slower than the revised growth rate witnessed in the preceding month. The cumulative index of industrial production for the first eleven months of this fiscal was 7.8%, down from last year's 10%. The data for January revised upwards to 3.95% from the earlier provisional figure of 3.7%.

Manufacturing sector, fell drastically by 3.5% from the 16.1% in the February of the preceding year.

The power sector's growth fell by 6.7% from the 7.3 % for the corresponding month last year.

The mining sector's figure sharply declined by 0.6% from a 11% in February last year. 15 of the 17 industry groups showed a positive growth in February, compared to the corresponding month of the preceding year.

Capital goods sector showed a negative growth of 18.4%, compared to a positive growth of 46.7% last February. Basic goods declined by 5.9% from 8.5% of February last year, while intermediate goods fell sharply by 8.4% from the 15.9% for the corresponding month last year.

Growth of the consumer durables sector dropped by 23.4 % from the 29.1% as on last February, whereas non-durables showed a positive growth of 6.1%, compared to a negative growth of 0.8% for the same month last year.

13th April, 2011

The markets opened on a negative note amidst mixed cues from Asian peers and tried to recover some ground in the morning trade but failed to cross]over into the positive zone. The markets slipped further during the day on profit taking and amid weak IIP data ending the day on a negative note. Most of the Sectoral indices ended in the red with Auto & Realty Being the major losers while Healthcare & FMCG ended flat. Among the Sensex stocks Reliance Infra (0.84%) and Cipla (0.63%) were the gainers while DLF (3.51%), Jindal Steel (3.01%) and Jaiprakash Asso. (2.96%) were amongst the losers. The Sensex lost 189 points or 0.97% to close at 19,263 while Nifty lost 56 points or 0.96% to close at 5,786.

Total traded turnover stood at Rs 91,785 cr. In equities FIIs were net sellers (Rs 691 cr) while DIIs were net buyers (Rs 264 cr).On the derivatives side, FIIs were net sellers in Index Futures (Rs 1951 cr) and Stock Futures (Rs 436 cr) while they were net buyers in Index Options (Rs 1392 cr) and Stock Options (Rs 10 cr).

The US markets ended lower on concerns that rising US stockpiles and subsequent lower demand may adversely affect the energy sector coupled with lower than expected Alcoa numbers . The Dow Jones lost 118 points or 0.95% to close at 12,264 while NASDAQ lost 27 points or 0.96% to close at 2,745.

The Asian markets are trading marginally lower. Nikkei is trading lower by 0.11% while Hang Seng is currently trading lower by 0.26%. The market breadth was negative throughout. FIIs turned net sellers in the cash segment while DIIs bought. The markets may open on a flat to negative note amidst weak global cues.

The trend deciding level for the day is 5800, If NIFTY trades above this level then we may witness a further rally up to 5820‐5850‐5875 levels. However, if NIFTY spot trades below 5865 levels then we may see some profit booking to initiate in market, it may correct up to 5770‐5745‐5720.