Mid Market- Lackluster trade continues at bourses on shocking IIP data Analysis for May 11, 2012

An unexpected decline in domestic industrial production led to heavy selling on domestic bourses as investors pondered over the fate of the Indian economy. The Sensex continued to languish below the baseline in afternoon trade as a shocking decline in the IIP signaled waning domestic and overseas demand and clouded the outlook for Asia"s third largest economy. India"s industrial output contracted 3.5 per cent, year in year in March 2012, compared to the annual 4.1 per cent rise in February 2012.

Moreover, weak cues from Asian markets did not help either as Asian markets fell for a third straight day as China"s industrial output expanded at the slowest pace in nearly three years in April 2012, raising fears of a hand landing in Asia"s largest economy.

At 12:39 PM, BSE SENSEX was at 16,273.87, down by 146.18 points or by 0.89 per cent and the NSE Nifty was at 4,919.90, down by 45.80 points or by 0.92 per cent.

The BSE Sensex touched intraday high of 16,395.12and intraday low of 16,233.76. Meanwhile, the BSE MIDCAP was at 5,919.85, down by 78.47 points or by 1.31 per cent, while the BSE SMLCAP was at 6,378.38, down by 75.82 points or by 1.17per cent.

On the Sectoral front, FMCG and Metal were down 1.64 per cent and 1.61 per cent, respectively

Out of 30 Sensex stocks, there were 6 advances and 24 declines.

The top losers of the Sensex were Maruti Suzuki (down 2.78 per cent at Rs 1,225.45), Hindalco Industries (down 2.73 per cent at Rs 114.20), ITC (down 2.64 per cent at Rs 232.45), Sun Pharma (down 2.32 per cent at Rs 578.90) and ONGC (down 2.14 per cent at Rs 254).