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IIP Data Spooks Market

IIP Data Spooks Market

The Sensex and Nifty both ended in the red today.  The Sensex closed at 9,465 and the Nifty slipped to close at 2,893.

Among the 30 Sensex stocks, 22 ended in negative terrain with the major losers being JP Associates, Ranbaxy, Bharti, Infosys, ICICI Bank and Maruti.

On the one hand, the good news was that inflation was well under control. India's wholesale price index rose 4.39% for the week ended January 31. That was less than the previous week's 5.07%.

Now for the bad news. India's industrial output fell 2% in December from a year earlier, below the previous month's revised 1.7% rise. Manufacturing production fell 2.5% in December from a year earlier.

Less than a week ago, the PM’s economic advisory council lowered its growth forecast for the economy in the current fiscal year ending March 2009 to 7.1% (down from 7.7%). It also said that the fiscal deficit would balloon to 8% of the GDP if subsidies are included.