Weak industrial output beats daylights out of Sensex

Renewed selling gripped the bourses after the latest data showed a lower-than-expected 6.2% growth in industrial production for October 2006.

At 13:30 IST the Sensex was down 197 points, at 13,201. The data of October industrial output hit the market at about 12:15 IST.

Some of the major losers among the Sensex constituents were State Bank of India (down 3.9% to Rs 1,194), Bhel (down 3.4% to Rs 2,445), Tata Motors (down 3.4% to Rs 810.50), Reliance Energy (down 3.2% to Rs 508.80), HDFC (down 2.6% to Rs 1,503.50), Hindustan Lever (down 2.7% to Rs 223), TCS (down 2.2% to Rs 1,145) and ONGC (down 2.2% to Rs 817).

After the latest economic data, market men will now be closely eyeing advance tax payment by corporates for the third installment, which falls due on 15 December 2006. The corporate advance tax payment will provide a broad outline for the quality of Q3 corporate results. This is more so given that strong earnings growth has been a key driver of the bull-run on the bourses.

The market witnessed immense volatility today. The barometer index has swung over 700 points so far, between some vital intra-day tops and bottoms.