The markets continued to remain in the negative territory but have shed some of their earlier losses on account of buying activity at lower levels during the previous two hours. Stocks from the banking, engineering, power and telecom sectors are leading the pack of losers. The overall decline to advance ratio is poised at 8:1 on the BSE.
The BSE Sensex and NSE Nifty are trading lower currently, down by almost 620 points and 180 points respectively. The BSE Midcap and Smallcap indices are trading lower by 8% and 7% respectively. The rupee is trading at 48.13 to the dollar.
The Index of Industrial Production (IIP) numbers for the month of August 2008 show a growth rate of 1.3% YoY, much lower the 10.9% growth registered during the same period last year. As per the data released by the Ministry of Planning & Programme Implementation, the manufacturing sector reported a growth of mere 1.1 % as compared to 10.7% during August 2007. Capital goods growth stands at 2.3% YoY against 30.8%. The lower growth rate in output can be attributed to the tight monetary regime and a weaker rupee, which in turn has pulled down the overall demand in the economy.
Tata Chemicals plans to put hold on the joint venture (JV) with Tanzanian government. As per report from a leading daily, the company had plans to set up a soda ash plant in JV with the Tanzanian government with an investment of around US$ 500 mn. Environmentalists in Tanzania argued that the proposed plant might pose environmental hazards. Hence, the company decided to put on hold on building the plant till the Tanzanian government gets all the clearances. In other developments company's biofuel plant in Maharashtra will go on stream next month. It also plans to expand its urea production capacity from 0.95 m tonnes to 1.2 m tonnes at its UP plant. The stock is trading down 9%.
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