After closing with slight gains on Wednesday, it's a dull day for the market as the Sensex opened 21 points lower at 17,236.36. The Nifty also opened 11 points lower at 5227.80.
The US Federal Reserve stopped short of offering new monetary stimulus on Wednesday even as it signaled further bond buying could be in store to help a US economic recovery that it said had lost momentum this year.
The Asian markets held steady ahead of the ECB meeting on Thursday after the Fed meeting proved to be a non-event.
Domestically, data showed that the eight core industries grew 3.6 percent in June as compared to 5.6 percent last year and 4 percent last month. July manufacturing also slipped lowest since November last year and June exports shrunk by 5 percent compared to last year.
However, there is little reason to lose hope in the equity markets as FII funds continued to flow in to total Rs 11,152 crore in July, according to provisional regulatory data, their biggest purchases since February. Foreign inflows into stocks so far in 2012 now stand at a net Rs 52,266 crore.
The poor monsoons is pushing the government to take drought measures. It announced a Rs 2,000 crore drought relief for five states.
Stocks in news
Manappuram Finance gained almost 2 percent reacting to the strong Q1 numbers where the company's net jumped 46 percent.
Kale Consultants was the strongest gainer in the midcap segment with the stock gaining 20 percent post strong Q1 numbers.
Hero Motocorp opened with almost 2 percent loss owing to the disappointing sales in July.
Coal India remained 2 percent lower after a UK-based hedge fund went to court against Coal India