Sensex up despite poor IIP number

The biggest losers were FMCG and PSU,which declined 1.8 per cent and 1 per cent respectively. When the markets were in a bad shape six months earlier excluding the last two months rally,the FMCG sector outperformed as people invested more in this defensive sector. But in the current rally investors are pulling out money from this sector to invest in other sectors. This is creating selling pressure on FMCG stocks, adds Sanghvi.

Inflation slipped to 0.48 per cent for the week ended May 2,2009,from the previous weeks figure of 0.70 per cent. The index of industrial production IIP data for

March showed an year-on-year decline of 2.3 per cent.

With the UPA appearing likely to form a stable government at the Centre,one source of uncertainty has vanished. The focus is now likely to shift to the US and European economies. If the inflow of news from the West improves,the markets could continue their upward climb.