The 30-share index BSE Sensex trimmed its early losses of more than 100 points and turned positive today after the administration issued IIP facts for April 2012.
Country's industrial output remained flat at 0.1% during April as against a year ago and was well below projections, administrative figures showed today.
An ET Now survey showed that the analysts had projected output to grow 1.5%.
A. K. Prabhakar, Senior Vice President - Equity Research, Anand Rathi, stated, "IIP numbers came on expected line and now June 18th RBI meet would come into focus. Market has held levels above 5000 in Nifty and banks and rate sensitive stocks can rally on expectation of RBI rate cut next week."
Sutapa Roy, Research Analyst-Economy, Microsec Capital Ltd, is of the view that looking at this inflationary risk, the central bank's actions are expected to stay more concentrated on CRR and OMOs path.
CRR may be slashed by around 50 bps during June Policy conference. "However, we would not be surprised if RBI goes for a both 25 basis points Repo as well as CRR rate cut. But what the economy actually needs is policy reforms rather than rate cut," Roy added.
At 12:30 pm, the BSE Sensex remained up by 0.2% to rule at 16,707.16.
The major gainers list comprised HDFC Bank, L&T and Infosys.
The broader 50-share NSE index surged 0.3% to trade at 5,069.54.
As per a Reuters report, "The rupee fell past 56 to hit its lowest against the dollar in more than one week as part of a sell-off in global risk assets."
The Indian unit remained at 56.04/05 to a dollar, a level last witnessed on June 1.
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