Sensex closes 82 pts down on poor IIP

Factory output as measured by Index of Industrial production grew by a mere 1.8% in December.

Written by Agencies | Mumbai | Published: February 10, 2012 4:41 pm

The BSE Sensex gave up early gains today and fell 82 points to 17,748.69 on weak industrial growth and continued uncertainty over euro-zone debt crisis,especially Greece’s bail out.

The Index of Industrial Production (IIP) rose at slower- than-expected 1.8 per cent in December – sharply lower than 5.9 per cent in November – dampening investor sentiment.

In all,12 of the 13 sectoral indices closed in the red. Only BSE-Metal made gains as Tata Steel spurted on providing encouraging outlook late yesterday despite posting losses for the third quarter of the current fiscal.

The Bombay Stock Exchange 30-share barometer initially touched a high of 17,890.11 but fell to a low of 17,627.14,down 204 points,on lower IIP data numbers. However,it recovered somewhat and ended the day at 17,748.69 — 82.06 points or 0.46 per cent.

The NSE 50-scrip index Nifty fell back 30.75 points or 0.57 per cent to 5,381.60.

“Markets corrected in the early trades but picked upward momentum toward the latter half of the day. But disappointing IIP numbers,coupled with pessimistic euro region news led to a sluggish trend in the market,” said Milan Bavishi,Head Research,Inventure Growth and Securities.

European equities fell as euro-zone finance ministers put off the decision to approve Greece’s second bail out package. Key indices in France (CAC),Germany (DAX) and the UK (FTSE) were down by up to 0.53 per cent.

Most Asian stock markets too ended with losses of up to 1.08 per cent. Only China index was up just 0.10 per cent. FIIs,meanwhile,continued buying Indian equities and picked up shares worth Rs 1,200.66 crore yesterday.

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