Indian Markets ended lower on Friday led by interest rate sensitive sectors - Microsec

Indian markets ended lower on Friday led by interest rate sensitive sectors after the RBI indicated limited room for further policy easing while announcing cut in interest rate by 25 bps.

On domestic front, Production of India's Eight Core Industries grew by 2.9 percent YoY for the month ended March 2013 against a decline of 2.4 percent YoY in February 2013. Growth was 3.0 percent YoY in March last year. During FY2012-13 (April-March) cumulative growth rate of the Core Industries was 2.6 percent YoY against 5.0 percent YoY during FY2011-12.

India's HSBC Manufacturing Purchasing Managers' Index (PMI) , fell for the second straight month in April, dipping to 51 from 52 in March. The reading for April was the lowest since November 2011.

India's foodgrain production has been revised upwards by over 5 million tonne to 255.36 million tonne in 2012-13 crop year from earlier estimates on account of higher output of rice, wheat and coarse cereals.

On global front, China's Manufacturing PMI slowed to 50.6 in April 2013 from March's 11-month high of 50.9. Whilst the U.S. Manufacturing PMI slowed to 50.7 in April 2013 from 51.3 in March andThe Euro-zone Manufacturing PMI was at 46.7 in April 2013 from 46.8 in March.

The European Central Bank has cut interest rates for the first time in 10 months, promising to provide as much liquidity as eurozone banks need well into next year and to help smaller companies get access to credit. The ECB lowered its main interest rate by a quarter percentage point to a record low 0.50 percent. The U.S. Unemployment Rate hit a four-year low in April 2013. The Unemployment Rate fell to 7.5 percent in April, its lowest rate since December 2008.

Source : Equity Bulls

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