Lower industrial output, weak global cues pull down Sensex

By IANS,

Mumbai: A benchmark index of Indian equities Tuesday closed 149 points lower on across the board selling as lower-than-expected industrial data and weak global cues dampened sentiments.


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The 30-share sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened at 20,357.79 points, closed at 20,203.34 points, down 136.55 points or 0.67 percent from its previous close at 20,339.89 points.

Soon after opening bell, the Sensex had moved to an intra-day high of 20,368.4 points and in noon trade dipped to an intra-day low of 20,107.25 points.

The dip came soon after the government released lower than expected industrial output numbers.

Industrial production in August grew at a much slower rate of 5.6 percent compared to the revised figures of 15.2 percent in the previous month, with a decline in capital goods output adding to the base effect.

At the National Stock Exchange (NSE), the 50-share S&P CNX Nifty ended at 6,090.9 points, down 0.73 percent.

Broader markets were also in the red with the BSE midcap index ending 0.51 percent down and the BSE smallcap index closing flat.

The market breadth was negative with 1,155 stocks advancing, compared to 1,796 on the decline and 145 remaining unchanged.

Top Sensex gainers were M&M, up 1.31 percent at Rs.715.90; Reliance Com, up 1.06 percent at Rs.186.10; TCS, up 0.89 percent at Rs.949.15 and ICICI Bank, up 0.65 percent at Rs.1,138.25.

Among the losers were DLF, down 2.07 percent at Rs.374.45; Hindalco Industries, down 2.05 percent at Rs.210.65; Jindal Steel, down 1.97 percent at Rs.714.90, and L&T, down 1.94 percent at Rs.1,998.60.

Other Asian markets also closed in a slump with news of China asking six major commercial banks to raise lending rates.

Hong Kong’s Hang Seng ended 0.37 percent down at 23,121.7 points, while the Japanese Nikkei closed 2.09 percent lower at 9,388.64 points.

The Shanghai Composite index, however, moved up 1.23 percent at 2,841.41 points.

European market indices too were in the red ahead of the US corporate earnings season.

Around mid-day, Britain’s FTSE 100 was trading at 5,631.34 points, down 0.72 percent.

The German DAX was ruling 0.52 percent lower at 6,276.93 points, while the French CAC 40 was at 3,721.47 points, down 1.25 percent from its previous close.

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