Macro data flares anxiety; Sensex marginally higher

Mumbai, Sep 11 (IANS) Volatility prevailed ahead of the forthcoming industry output and inflation data leading a barometer index of the Indian equities to gain marginally by 50 points during the late-afternoon trade session on Friday.

The barometer 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE) had plunged by 97.41 points or 0.38 percent on Thursday.

Volatility was also observed on the wider 50-scrip Nifty of the National Stock Exchange (NSE). It was marginally higher by 11.25 points or 0.14 percent to 7,799.35 points.

The Sensex of the S&P Bombay Stock Exchange (BSE), which opened at 25,793.77 points, was trading at 25,668.06 points (at 2.30 p.m.), up 45.89 points or 0.18 percent from the previous day’s close at 25,622.17 points.

The Sensex touched a high of 25,875.96 points and a low of 25,602.45 points in the intra-day trade so far.

Analysts pointed out that the markets were trading in line with its Asian peers and that investors remained wary of taking positions ahead of the key industrial output data.

“Indian markets are trading flat in line with Asian markets led by cautiousness ahead of the domestic IIP (Index of Industrial Production) data and the US Fed meet,” Vaibhav Agrawal, vice president, research, Angel Broking, told IANS.

Among Asian markets, Hong Kong’s Hang Seng tumbled by 0.14 percent, Shanghai Composite Index dropped by 0.75 percent. Japan’s Nikkei index was inched-down by 0.19 percent.

“Broader markets too remain flat with breadth in favour of the advances. Investors remain wary of taking positions before the weekend and we expect markets to continue to trade flat today,” Agrawal said.

The IIP data will have a major bearing on the decision of the Reserve Bank of India (RBI) on the next phase of rate cuts during its upcoming monetary policy meet on September 29.

“Even though the markets have priced-in a below-average IIP on account of a decline in eight core industries (ECI), there is still anxiety over the extent of the downfall, especially given the concerns on global slowdown,” Anand James, co-head, technical research desk with Geojit BNP Paribas Financial Services, told IANS.

The ECI for select factory output slowed to 1.1 percent growth in July from an increase of 3 percent in the previous month. The ECI’s constituents contribute a whopping 38 percent to the IIP.

The factory output data which comes with a month’s lag — had accelerated to 3.8 percent in June from 2.7 percent in the previous month.

Sector-wise, healthy buying was witnessed in information technology (IT), fast moving consumer goods (FMCG) and consumer durables sectors.

However, metals, capital goods and banking stocks came under selling pressure.

The S&P BSE IT index gained by 68.42 points, FMCG index rose by 61.75 points and consumer durables index was higher by 57.29 points.

The S&P BSE metal index declined by 85.92 points, capital goods index decreased by 78.27 points and power index slipped by 46.89 points.

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