today's gain the Banking, auto shares

Indian equities opened firm today, playing a catch-up with global markets after a two-day break on 10 and 11 March 2009 on account of local holidays. The market surged in early afternoon trade after the latest data showed a sharp fall in inflation which will provide room for the central bank to reduce policy rates further. However, the market soon cut gains as the data showed industrial production declined for the second month in a row in January 2009

Industrial production declined for the third time in fours months in January 2009. Index of industrial production (IIP) declined 0.5% against a upwardly revised 0.6% decline in December 2008, government data released a little while ago showed. Industrial production had risen 6.8% in January 2008.

Inflation based on the wholesale price index (WPI) rose 2.43% in the year through 28 February 2009, much lower than previous week's 3.03% rise, data released by the government today, 12 March 2009, showed. It was the smallest annual rise in inflation since 8 June 2002 when inflation was at 2.18%. Its lowest ever was 1.13% on 2 February 2002. However, the inflation for the year through 3 January 2009 was revised upwards to 5.33% from 5.24%.