Sensex, Nifty fall in red over weak economic data

Sensex, Nifty fall in red over weak economic data

Key stock barometer Sensex fell 105 points today after disappointing economic data forced investors to tighten their exposure.

Surging oil prices and a sluggish trend in Asian markets brought pain, too.

The factory output, measured in terms of the Index of Industrial Production (IIP), had witnessed a rise of 4.2 per cent in October 2016, data released by the Central Statistics Office (CSO) showed today.When compared on a monthly basis, the IIP grew 4.14 per cent in September this year.

Industrial output rose by a meagre 2.5 per cent in April-October this fiscal as compared to 5.5 per cent in the same period of 2016-17.

In October, growth in the manufacturing sector, which accounts for 77.63 per cent of the index, slowed to 2.5 per cent from 4.8 per cent a year earlier.

The 30-share gauge declined 104.55 points, or 0.31 per cent, at 33,123.44.

FMCG, banking and power indices retreated by up to 0.16 per cent. The gauge had lost 227.80 points in the previous session. The NSE Nifty slipped 29.60 points, or 0.28 per cent, to 10,210.55. Market mood took a hit after government data, released after trading hours yesterday, showed that industrial production growth hit a 3-month low of 2.2 per cent in October and retail inflation jumped to a 15-month high of 4.88 per cent in November. Investors brushed off another record close on Wall Street and looked forward to the Federal Reserve's latest policy meeting outcome today. Japan's Nikkei shed 0.66 per cent while Shanghai Composite was down 0.12 per cent in early trade today.

Hong Kong's Hang Seng, however, was up 0.22 per cent. Meanwhile, the US Dow Jones Industrial Average ended 0.49 per cent higher yesterday.