Market ignores healthy industrial data, Nifty down 11 points
Mumbai: Continuing its downward trend, the benchmark Nifty Wednesday lost 11 points at the National Stock Exchange (NSE) as investors ignored robust industrial output data amid pessimism over rate cut.
Trading sentiment was largely affected by the Standard & Poor's warning that India faces a one-in-three chance of being downgraded in its sovereign rating if there was no improvement in its economic growth prospects.
Trading began on a positive note with the key index regaining 5,900 mark with sound buying in specific stocks amid positive global cues. But gains were capped as cautiousness prevailed ahead of IIP data and retail inflation numbers.
The market turned volatile after the release of IIP data which showed a healthy growth of 8.2 percent in October. The better-than-expected figure failed to impress investors.
The retail inflation, which showed a modest rise to 9.90 percent in November from 9.75 percent in October, too dampened the mood.
The index made several failed attempts to regain its positive momentum before ending with modest losses. Banking, capital goods, FMCG and metal stocks saw profit-taking. Auto, technology, pharma and oil & gas scrips attracted good buying.
Globally, Asian stocks climbed to multi-month highs on hopes of a deal from the US budget talks and expectations for more stimulus measures announcement from the Federal Reserve.
The Nifty oscillated between a high of 5,924.60 and a low of 5,874.25 before concluding at 5,888, a loss of 10.80 points, or 0.18 percent, over the last close.
HUL, BHEL, Grasim, Jindal Steel, HDFC, GAIL, BPCL, UltraTech, Hindalco and ONGC were the top losers from the Nifty pack. Gaingers included M&M, Bajaj Auto, RIL, IDFC, ITC, HeroMotco, Reliance Infra, Sun Pharma and Lupin.
The turnover in cash segment declined to Rs 13,911.07 crore from Rs 14,242.59 crore yesterday. Overall, 7,262.39 lakh shares changed hands in 63,96,703 trades. Total market capitalisation stood at Rs 66,37,728 crore.