By IANS,
Mumbai : A benchmark index for Indian equities Monday fell 343 points and below the 16,000-mark as markets reacted negatively to latest data which showed that industrial output had slumped to minus-5.1 percent.
The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened higher at 16,354.96 points, closed at 15,870.35 points, 343.11 points or 2.12 percent down from its previous close at 16,213.46 points.
The 50-scrip S&P CNX Nifty of the National Stock Exchange also ended in the red at 4,764.6 points, down 2.1 percent or 102.1 points from its previous close.
The index of industrial production (IIP), the barometer for measuring factory output, saw a staggering decline in October, shrinking to minus-5.1 percent in output mainly owing to huge fall in manufacturing and mining sectors.
Manufacturing output registered a negative growth of (-) 6 percent, while mining activity declined to (-) 7.2 percent.
Broader markets all closed in the red with the BSE 500 index ending 2.07 percent lower. The BSE midcap index slipped 1.9 percent down while the BSE small cap index shed 1.54 percent.
Metals, banking and oil gas scrips bore the brunt of the selling. Only one of the sectoral index, IT, showed gains out of the 13 indices on the BSE which were in the red.
“The markets came off sharply mid-session after the IIP numbers were released. While the IIP numbers were disappointing, the markets were also likely impacted by the currency fluctuations,” said Dipen Shah, head-fundamental research, Kotak Securities.
“The rupee depreciated sharply by more than 1 percent versus the USD today, and this also made the markets nervous,” added Shah.
The market breadth was negative, with 798 stocks advancing and 1,943 on the decline. Another 121 were unchanged.
There were only three gainers on the 30 scrip Sensex: Wipro, up 2.56 percent at Rs.414.55; Infosys, up 0.93 percent at Rs.2,731.25 and TCS, up 0.7 percent at Rs.1,179.90.
Prominent losers included: Tata Power, down 6.46 percent at Rs.89.10; Hindalco, down 6.37 percent at Rs.123.55; Jindal Steel, down 5.14 percent at Rs.503.50; and SBI, down 4.87 percent at Rs.1,773.10.
According to data available with the Securities and Exchange Board of India (SEBI), foreign institutional investors (FIIs) sold stocks worth $55.94 million.
Asian markets closed mixed with investors cautiously welcoming a deal by European leaders to introduce tougher fiscal rules in a bid to save the Euro zone.
The Japanese Nikkei closed 1.37 percent up at 8,653.82 points. Hong Kong’s Hang Seng ended flat at 18,575.66 points.
The Chinese Shanghai composite index closed 1.02 percent lower at 2,291.54 points.
European markets did not seem enthused over the measures announced by policy-makers which included pursuing stricter budget rules and a stronger fiscal union, and to give upto Euro 200 billion in bilateral loans to the International Monetary Fund to help tackle the crisis. Investors saw the move as inadequate.
Britain’s FTSE 100 was ruling 0.59 percent down at 5,496.8 points, while the German DAX was trading 1.66 percent lower at 5,887.28 points.
The French CAC 40 was ruling 0.99 percent down at 3,140.81 points.