Markets Volatile, April IIP At 0.1%

As we expected, the Indian markets opened in the negative today. In the early trades, the BSE Sensex is down 56 points or 0.33% to 16611. The 50-share Nifty index is also down by 17 points or 0.34% to 5037.

The Apr IIP data, the first IIP data for the new fiscal, has come in at a sorely disappointing 0.1%. Earlier, a CNBC TV18 poll suggested that the Apr IIP may come in at 1.08% against -3.5% in March. In fact, the markets were showing volatility in anticipation of the IIP number. The monetary policy review by RBI due on Monday will also take the IIP figure into account.

On the sectoral front, the CD index is up by 0.88% at this hour. Auto, Metals and Oil & Gas are marginally up. FMCG is taking most of the beatings, as the major index participants, ITC and HUL, are both trading lower. The Power and Healthcare indices are also trading down by over 0.50% each. The rupee has lost again by 16 paise and is trading near the 56/dollar mark.

The scenario in the Asian indices is also bearish. Nikkei is down by nearly 1%, while Hang Seng and Shanghai are also down by over 0.6% and 0.8% respectively.

Meanwhile, Deepak Parekh of HDFC made a statement that the lack of political will in India is holding back the growth of the country. He has also said that despite the current economic hurdles, the country has managed to grow by 6.5%, which is still impressive.

Among the Sensex stocks, Sterlite is up 1.82% and Hindalco is also up 1%. The financial shares of GAIL India, Bajaj Auto, Cipla and Maruti Suzuki are all trading with over 0.5% gains. Coal India is trading marginally up after the announcement that it will hike coal prices in a select few blocks. Wipro is top loser, down by 2.32%. The new Sensex participant, Dr Reddy's Labs, is also down by 2.22%.

In other stocks, PFC has surged 2.79% over news that the power companies will be allowed to hike their tariffs. The shares of REC are also trading up by 2%. Pidilite has surged by 1.78% after Nomura set the price target of Rs 174. JSW Steel has reported lower capacity utilisation (80%) due to iron ore constraints, and the shares of the company have falled by 1.45% at this hour. Suzlon Energy's shares have fallen by over 1.5% after the company announced that it has received a 45-day extension from its bondholders.

Overall, the health of the market is negative as of now, with more shares registering a decline. SBI has seen the highest turnover, while GVK Power has witnessed high volumes.