A promising 10.3 per cent industrial growth in October failed to enthuse the stock markets, with the benchmark Sensex on BSE closing down by over 70 erasing smart gains it posted in early trade on expectations of robust IIP numbers.
Riding on high expectations that industrial growth would also surprise markets the way the GDP figure of 7.9 per cent did, the 50-share Nifty of NSE surged to over one-year high of 5,182.55 in early trade. But it declined immediately after data of Index of Industrial Production were released.
The National Stock Exchange registered its 19-month high of 5,182.55 at intra-day trade, the level not seen since May 6, 2008. Finally, it settled down by 17.35 points or 0.34 per cent at 5,117.30 from its last close.
The benchmarl Sensex on the Bombay Stock Exchange also initially jumped 162 points amid positive cues from Asian bouses but could not able to sustain higher levels
The 30-share index ended the day at 17,119.03, a fall of 70.28 points or 0.41 per cent from its previous close.
Factory output grew by a robust 10.3 per cent in October against a paltry 0.1 per cent a year ago. However, it fell below market expectations. Brokers said the markets were expecting 13-14 per cent industrial growth.
“Investors were disappointed at the IIP figures. Over the next 2—3 days the market would remain volatile and would continue to witness sideways movement. Post-Wednesday it might stabilise,” said Geojit BNP Paribas Financial Services Research Head Alex Mathew.