Sensex down 32pts, IIP growth, inflation data dim rate cut hopes

Brokers said trading remained listless as traders reduced their holdings despite a firming trend in Asian and European stock markets.

Stock market analysts said investors appeared not enthused by the sharp growth in IIP.

"I am very encouraged by the indications of the green shoots in economy in terms of production. IIP figures are very encouraging," Finance Minister P Chidambaram said in Delhi.

Sudip Bandyopadhyay MD & CEO Destimoney Securities said the October IIP numbers were better than expected aided by the "statistical spurt" in infrastructure related output.

Globally, Asian stocks ended higher amid sustained optimism for an agreement on upcoming US tax hikes and spending cuts, ahead of the conclusion of a Federal Open

Market Committee that may see it undertake more asset buying.

Key indices in China, Hong Kong, Japan, Singapore, Taiwan and Soutk Korea rose in 0.39-1.00 per cent range.

European markets showed a mixed trend in the early trade. Indices in Germany and London inched up by 0.23 per cent and 0.30 per cent respectively while France index eased by 0.11 per cent.

Turning to the local market, 20 scrips out of the Sensex pack declined, nine stocks gained while one counter closed unchanged over yesterday's rates.

Major losers from the Sensex pack were HUL (2.65 pc), BHEL (1.98 pc), Gail India (1.67 pc), Jindal Steel (1.55pc), ONGC (1.44 pc), Hindalco Ind. (1.42 pc), HDFC (1.33pc), Wipro (1.25 pc) and L&T (1.18 pc).

Among gainers, Bajaj Auto rose by 2.57 per cent, followed by M&M (2.20 pc), Hero Motocorp (1.92 pc) and Sun Pharma (1.35 pc).

Across sectoral indices, the BSE-Capital Goods declined by 0.99 per cent, the BSE-PSU (0.81 pc), the BSE-Metal (0.71 pc) and the BSE-Power (0.65 pct).

On the other hand, BSE-Consumer Durable moved up by 0.95 per cent, the BSE-Auto (0.94 pc) and the BSE-IT (0.38 pc).

... contd.

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