Market drifts lower in choppy trade ahead of key economic data
The market moved between positive and negative territory due to lack of strong participation from investors ahead of industrial production and inflation data due on Friday, 11 April 2008. Key indices, which had soared in mid-afternoon trade, fell sharply in the last hour of trade led by sharp decline in banking stocks.
The 30-share BSE Sensex fell 95.41 points or 0.60% at 15,695.10.
The CNX S&P Nifty fell 14.05 points or 0.30% at 4733.
The government will tomorrow, 11 April 2008, release data on industrial production for February 2008. Data released early this month which showed an improvement in infrastructure sector growth has raised expectation of improvement in industrial production for the month. Industrial production growth had slumped to 5.3% in January 2008. Infrastructure sector which account for nearly 27% of industrial output, grew 8.7% in February 2008, much faster than a downwardly revised 3.1% growth in January 2008. Industrial production accounts for about a fifth of gross domestic product (GDP).
Another data due tomorrow is inflation for the year through 29 March 2008. Inflation had surged to a three year high of 7% in the week ended 22 March 2008, sparking fears of a monetary tightening by the Reserve Bank of India.
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