 "Sensex closes in red; Infosys, TTK Prestige top losers")
Even though India’s factory output has improved for the month of September, the Sensex closed at 18658.01 , 146.74 points down (-0.78%) and the Nifty closed at 5676.05, 32.00 points down (-0.56%) as Infosy’ bleak outlook spooked investors.
India’s industrial output grew a higher-than-expected 2.7 percent in August, increasing the complexities for a central bank, which is facing pressure from different quarters to cut rates, even as inflation stays high.
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However, encouraged by turnaround in manufacturing sector, Prime Minister’s Economic Advisory Panel today said industrial output will show improvement in the coming months.“IIP number do indicate that there is some turnaround as far as manufacturing sector is concerned. I do expect in coming months the growth rate will further pick up and year as a whole we can still see manufacturing growth at 3-4 percent,” PMEAC Chairman C Rangarajan said.
More importantly, the government revised downwards the July print to (-)0.2 percent from the provisional 0.1 percent earlier.
Annual consumer price inflation fell in September to 9.73 percent, driven by a marginal fall in fuel and food prices, government data showed on Friday.
A panel headed by C Rangarajan, chairman of the prime minister’s economic advisory council, has recommended scrapping the mandatory norm of buying 10 percent of sugar mills’ output for supplies to the poor.
Additionally, a Hyderabad court today issued a non-bailable warrant against UB Group chairman Vijay Mallya for a bounced cheque worth Rs 10.3 crore.
Auto, IT and Bank stocks were down today.
Stocks in news
HDFC was up half a percent. The company posted a 30% jump in net profit.
Infosys corrected to a 6 percent decline after falling 8 percent reacting to the guidance issued by the company at the quarterly results.
TTK Prestige was down 9.55 percent after a 12 percent fall in net profit while margins faced a 100 bps decline.
UB Group company stocks were trading low.