Benchmark indices were trading lower on Monday as industrial output showed signs of slowing down.
The BSE benchmark, the Sensex was trading 200.51 points or 0.74% lower at 26,860.53 points, while the NSE’s Nifty was trading 0.69% or 56.20 points lower at 8,049.30 points at 11:00 am IST.
On Friday, data showed that the Index of Industrial Production (IIP) rose 0.5% In July as against 3.9% in the previous month; slowest in four months.
Experts feel markets could see further correction. “We may see further price correction or profit booking, if the Nifty breaks 8050 in the near term. Resistance is at 8250. Support is at 8050 and below that 8000,” Standard Chartered Securities said in a note.
Among sectoral indices, the BSE Metal (-1.28%), BSE Oil & Gas (-0.77%) and BSE Capital Goods (-0.71%) were trading in the red. Among Sensex stocks, Hindalco (-2.85%), Gail (-2.23%) and Tata Steel (-1.96%) were the major losers.
Most Asian indices were trading lower. The Hang Seng (-0.73%), Kospi (-0.24%), Straits Times (-0.27%), Jakarta Composite (-0.24%) and Taiwan Taiex (-0.15%) were trading lower.
NSE Sensex tumbles over 185 points in early trade
The benchmark BSE Sensex tumbled over 185 points to dip below the 27,000-mark in early trade today on selling by funds and retail investors after industrial production growth slowed to 0.5 per cent in July amid a weak trend in the Asian region.
The 30-share barometer slipped below the 27,000-mark by falling 185.55 points, or 0.69 per cent, to 26,875.49 with metal, FMCG, power, capital goods and IT stocks leading the fall.
The index had gained 65.17 points in the previous session on Friday.
On similar lines, the National Stock Exchange index Nifty moved down by 70.95 points, or 0.88 per cent, to trade below the 8,100-mark at 8,034.55.
Brokers said selling activity emerged largely on disappointing economic data as the country’s industrial production growth slowed to 4-month low of 0.5 per cent in July but easing retail inflation to 7.8 per cent in August from 7.96 per cent in July, restricted the fall.
Besides, a weak trend on other Asian bourses after data showing Chinese industrial output expanded in August at its slowest rate since the global financial crisis, influenced the sentiments, they said.
Among other Asian markets, Hong Kong’s Hang Seng index was down by 0.75 per cent in early trade, while Japan’s financial markets are closed today for a public holiday.
fe Bureau | The Financial Express