For the third consecutive day, the benchmark indices continued to incur significant losses. The markets looked directionless until the latest IIP data for the month of October, 2011 was announced. The disappointing de-growth of 5.1% on an annual basis raised concerns over the sustainability of the stock markets in the short-term triggering the weak sentiments. The selling pressure clouds were soon hovering over each BSE sectoral index barring IT which was seemed to be strengthening with the Rupee falling towards making a new all-time low.
NMDC: CMP: ` 169 (-5%)
The mining companies also lost the ground as the new mining bill was introduced in parliament. The bill demands the managements of mining companies to pay higher compensation to the people displaced by mining activities.
Crompton Greaves: CMP: ` 121 (-4%)
The shares of most of the companies engaged in capital goods went through significant selling pressure as the investors’ concerns raised over the latest industrial data, which displayed the disappointing de-growth in capital goods production. The capital goods output declined over 25% YoY in October 2011.
Jain Irrigation: CMP: ` 112 (-3%)
Besides the weak sentiments prevailing in the stock markets, the shares of this mid-cap micro irrigation company also declined on the reports that a major fire-incident has taken place at the company’s Jalgaon based plastic pipe stocking yard. The fire took place on Saturday evening and was soon contained without any significant damage.
Gail: CMP: ` 387 (-1%)
The company signed an agreement with US based Sabine Pass Liquefaction, LLC. The company will be supplying LNG to the US based company, which is a subsidiary of Cheniere Energy Partners, L.P. for the next twenty years. However, the weak sentiments clouded all over the financial markets took away the early gains.