Sensex falls 189 pts on slowdown in industrial output


Mumbai: The BSE Sensex fell 189 points to 19,262.54 on Monday, declining for the fifth day in a row as industrial growth showed a sharp dip amid weak global markets and high oil prices. There was heavy selling in realty, auto, consumer durables and refinery counters. The government data today showed that growth in Index of Industrial Production (IIP) dipped to 3.6%, from 15.1% in the same period a year ago. The decline, coupled with high food inflation and soaring high crude oil prices, worried investors who are already expecting a further hike in RBI's policy rates next month. The Bombay Stock Exchange 30-share bellwether index opened lower and remained in the negative terrain throughout the day, before settling at 19,262.54 - a fall of 188.91 points or 0.97%. In five straight sessions, the Sensex has slipped 439.19 points or 2.23%. The NSE 50-issue Nifty also plunged 56.30 points or 0.96% to 5,785.70. Selling in index heavyweights like RIL, HDFC, HDFC Bank, Tata Motors, TCS and ONGC pulled the Sensex down. "The major indices lost about a percent due to IIP data being below market expectations and higher global crude oil prices," said Parag Doctor, Senior Analyst at Motilal Oswal Securities. "The decline was led by the rate sensitive sectors - Realty and Auto. The FMCG and Pharma sectors saw defensive buying," he added.
Source: PTI