Indian Markets end lower as investors remain cautious - Microsec

Indian markets ended tad lower for the week as investors remained cautious ahead of Budget. Lower-than-expected inflation and disappointing industrial production figures did not impact the market in a significant way.

On domestic front, India's Industrial Output contracted once again in December 2012. Production declined by 0.6 percent YoY during the month, registering third fall in last four months, mainly due to muted activities in Manufacturing and Mining sectors.

India's WPI Inflation for January 2013 moderated for the fourth straight month and slipped below 7.0 percent for the first time since December 2009, marking a three-year low. Inflation stood at 6.62 percent YoY in January 2013 as compared to 7.18 percent YoY in December 2012.

After eight months of contraction, India's Exports grew marginally in January 2013. Exports rose 0.82 percent YoY to USD25.59 billion in January 2012 and Imports for the month increased by 6.12 percent YoY to 45.58 billion, leaving a Trade Deficit of USD20.0 billion.

On global front, Japan's GDP contracted for the third straight quarter in Q4 of 2012. GDP shrank at an annualized rate of 0.4 percent in the last three months of 2012.

The U.S. Industrial Production contracted 0.1 percent in January 2013. But Industrial Production as a whole expanded at a 2.6 percent annual pace in the October-December 2012 quarter.

The U.S. Initial Jobless Claims declined by 27,000 to a seasonally adjusted 341,000 in the week ended February 09, 2013 from its previous week.

Source : Equity Bulls

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