Dull global cues, IIP pulls Sensex 432 points lower (Roundup)

MUMBAI - A benchmark index of Indian equities Friday closed 432 points lower as selling pressure intensified across sectors, especially in heavyweight scrips.

Disappointing industrial output numbers and weak global cues added to the downward pressure.

The 30-share sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened at 20,529.74 points, closed at 20,156.89 points - down 432.20 points or 2.1 percent from its previous close at 20,589.09 points.

At the National Stock Exchange (NSE), the 50-share S&P CNX Nifty ended at 6,071.65 points - down 1.98 percent or 122.60 points.

Broader market indices closed in a slump too with the BSE midcap index ending 2.32 percent lower while the BSE smallcap index moved down 2.44 percent.

India’s industrial production grew at a disappointing 4.4 percent in September, compared to 8.2 percent in the same month of the previous fiscal, as decline in capital goods output along with a base effect pulled down the index.

Realty, consumer durables, metals and banking stocks led the losers’ pack. All the 13 sectoral indices on the BSE were in the negative.

Top Sensex losers were DLF, down 5.46 percent at Rs.327.55; M&M, down 4.75 percent at Rs.774.40; Hindalco Industries, down 4.72 percent at Rs.223; and SBI, down 4.55 percent at Rs.3,030.40.

The only two gainers were Hero Honda, down 0.29 percent at Rs.1,816.55, and HDFC, down 0.11 percent at Rs.713.70.

The market breadth was negative, with 753 stocks advancing, 2,263 declining and 101 remaining unchanged.

According to data available with the Securities and Exchange Board of India (SEBI), foreign institutional investors bought scrips worth $25.03 million Friday.

Other Asian markets were in the red too after reports that China’s Central Bank might further hike interest rates.

The Shanghai Composite index plummeted 5.16 percent down at 2,985.43 points.

Hong Kong’s Hang Seng closed 1.93 percent down at 24,222.58 points. The Japanese markets ended 1.39 percent lower at 9,724.81 points.

European bourses were trading lower on concerns about the sovereign debt of countries in the Euro zone.

Around mid-day, Britain’s FTSE 100 was trading flat at 5,812.45 points.

The German DAX was down 0.16 percent at 6,712.78 points, while the French CAC 40 was 0.99 percent lower at 3,828.97 points.