L&T, BHEL Fall as Industrial Data Disappoints

Shares of L&T and BHEL fell on Monday after the industrial output data disappointed the Street. The industrial production index grew 2.7 per cent in May 2015, which was below the Street's expectations of of 4.1 per cent. Further, IIP growth for April 2015 was revised downwards from 4.1 per cent to 3.3 per cent, largely because of a sharp downward revision - from 11.1 per cent to 6.8 per cent - in the capital goods sector.

The capital goods sector grew a muted 1.8 per cent in May 2015 while consumer goods contracted and growth in intermediate goods decelerated.

"This implies that the revival in the industrial sector is not as strong as we were made to believe a month ago," brokerage Nirmal Bang said in a report.

Shares of L&T and BHEL had rallied 13 per cent and 8 per cent respectively in the past one month. In comparison, the Nifty gained over 4 per cent in the past one month.

At 10:15 a.m., shares of L&T were down 1.6 per cent while BHEL fell over 1 per cent as compared to a flat Nifty.