Weak economic data pulls sensex down to 6-week low

A higher than expected retail inflation figure and a sharply lower than projected industrial production data, which were announced on Thursday, pulled the markets down on Friday with the sensex and nifty both diving below their six-week-low levels. With 22 of the 30 sensex constituents in the red, the sensex closed 256 points, or 1%, lower at 25,611. The day's slide was led by Vedanta and Hindalco. Earlier in the day, the sensex had touched a low at 25,541, down 325 points from its Wednesday close. It was also the third weekly fall for the index Indian stock market astrology prediction

Economists pointed out that the sharp drop in the Index of Industrial Production (IIP) was mainly due to the impact of the base effect of the previous year. "IIP growth declined to a four-month low of 3.6% in September from 6.3% in August as an unfavourable base effect played out. Early Diwali had led to a pre-festive season spike in production levels in September last year," said a note by Jay Shankar, chief India economist, Religare Capital Markets. 

On the rise in consumer inflation to 5% in October, Shankar said that it was mainly because of a spike in the prices of pulses, and this is unlikely to change RBI's expected monetary stance when the central bank meets on December 1 to decide on rates Jackpot Stocks Trading Tips

Dealers also said that with the US Fed expected to raise rates in its December meet, some foreign institutions are slowly taking money off emerging markets, including India, although most long-term players are staying put. The FPI outflows are having some negative impact on the market sentiment, they said. End of session data on the BSE showed a net FPI outflow of Rs 747 crore ($115 million) for Friday. For November, Sebi data showed a net FPI outflow of Rs 2,505 crore ($381 million). 

Among the sensex stocks, Coal India bucked the trend with a sharp 2.6% rise ahead of its July-September results with analysts expecting a 25% rise in net. In post market hours, the PSU major announced a 16% rise in net profit to Rs 2,544 crore from an 8% rise in revenues to Rs 16,958 crore Commodity Market Astrology Tips