makin97 NSETIPS @ RAKESH MAKIN: MARKET ENDED 10.06.2011 FRIDAY

WERE TODAY'S GAINERS

MARKET ENDED 10.06.2010 FRIDAY

SENSEX 18268.54 -116.36

NIFTY 5485.80 -35.25

NASDAQ 2652.01 -32.86

UPDATEDTIME 09.28 PM 10 JUNE 2011

Markets ended on weak note for third consecutive session as April IIP data and weak cues from global peers dampened sentiments. All the sectoral indices ended in the negative terrain with capital goods, FMCG and realty leading the decline.

As per the new series, India's IIP growth for the month of April was at 6.3 per cent versus 13.1 per cent. Mining growth was at 2.2 per cent vs 9.2 per cent (YoY), manufacturing growth stood at 6.9 per cent vs 14.4 per cent (YoY).

The base year for the new industrial production index has been changed from 1993-94 to 200405. Weightage of sectoral classification has been revised. Weight of mining is revised up to 14.2% from 10.5% and manufacturing to 75.5% from 79.4%.

According to the old series April IIP grew at 4.4 per cent versus 7.3 per cent. The April IIP is below estimates as per the old series. ET Now poll was expecting growth of 5.5 per cent against 7.3 per cent growth in March.

"The finance minister termed the April IIP figures as 'disturbing' and indicated that one should wait for longer term IIP growth to see the underlying trend in industrial growth. Markets reacted negatively to the IIP numbers as the numbers were lower than estimated. Given the resilient inflation, a further interest rate hike is imminent, may be as early as June monetary policy meeting. Markets fear that further monetary tightening may retard the growth further.

The current macro condition of Indian economy is not the most desirable from a growth point of view. The growth is slowing down even as the inflation remains well entrenched. This could lead to "Stagflation".

We believe Indian equities would continue to remain range-bound and may even weaken further given ongoing euro-debt crisis, fresh worries on US economic growth and domestic economic risks as outlined above.

National Stock Exchange's Nifty closed at 5485.80, down 35.25 points or 0.64 per cent. The broader index touched a high of 5521.45 and low of 5457.45 intraday.

Bombay Stock Exchange's Sensex was at 18268.54, down 116.36 points or 0.63 per cent. The 30-share index hit a high of 18399.02 and low of 18182.90 in trade today.

BSE Midcap Index was down 0.34 per cent and BSE Smallcap Index declined 0.46 per cent.

Amongst sectoral indices, BSE Capital Goods Index was down 1.08 per cent, BSE FMCG Index slipped 1.04 per cent and BSE Realty Index moved 0.80 per cent lower.

DLF (-1.83%), ITC (-1.69%), L&T (-1.64%), Reliance Infrastructure (-1.52%) and Tata Steel (-1.36%) were the major Sensex losers.

Maruti (1.03%), Hindalco (0.74%), ONGC (0.64%) and TCS (0.37%) were the only index gainers.

Haryana Government has banned strike at Maruti Suzuki's Manesar plant. It has issued prohibitory orders against striking workers and refered the matter to a local labour court.

RBS has cut price target for Hindalco Industries to Rs 277 from Rs 315 but maintained "Buy" target on the stock.

Market breadth was negative on the BSE with 1650 declines against 1197 advances.