Markets edged lower with weakness in both global and domestic markets. Indices commenced the lower and further dropped with the release of negative industrial output. Global markets were also equally responsible for the dampened sentiments with J.P. Morgan Chase revealing huge derivative loss, downbeat China data and euro-zone woes weakening markets. March industrial output (IIP) contracted sharply by -3.5% as compared to 4.1% in the month of February and 9.4% in the corresponding period last year thereby indicating a slowdown in the economy. Output of the manufacturing sector, contracted by 4.4 % in March, compared to growth of 11% in March 2011. Market breadth was weak as on BSE, 1,796 shares declined and 1,012 shares gained.
The BSE Sensex touched a high of 16,447 and a low of 16,233 before it ended 0.8% or 127 points lower at 16,293. Mid cap and small cap stocks were also hurt and moved in line with their large cap peers. The BSE Mid-cap index shed 0.8% while the BSE Small-cap index fell 0.9%. Similarly the S&P CNX Nifty dropped 0.7% or 37 points to close at 4,929.
Majority of the indices ended lower on the BSE sectoral space with only two gainers. The BSE Auto index surged 0.6% while the BSE Bankex index remained almost flat. On the other hand, the BSE Healthcare index was the highest loser which tanked almost 2%. This was followed by the BSE Power and BSE FMCG indices which too fell 1.4% and 1.3% respectively. IT stocks declined amid the ongoing euro-zone debt worries. The BSE IT index fell 1.1%.
Of the 30 stocks on BSE, 21 stocks were in red. Tata Power, Sun Pharma, Hindalco, Coal India and Maruti were the top five losers which fell 4.9%, 3.9%, 3.3%, 2.2% and 2.1% respectively. On the contrary, Bajaj Auto, Tata Motors, BHEL, DLF and SBI were the top five gainers which grew by 3.5%, 2.7%, 0.8%, 0.6% and 0.5% respectively.
As per the data released by SEBI, foreign institutional investors (FIIs) were net buyers in equity to the tune of Rs 342 crores. On the other hand, they were net sellers in debt segments to the tune of Rs 219 crores.