Sensex declines 62 pts, weak trend in Asian markets

Mumbai :The benchmark BSE Sensex fell by 62 points as investors cut down their bets on disappointing macroeconomic data and weak trend in Asian markets.

The 30-share barometer fell 61.55 points or 0.21 per cent to 28,090.85 with IT, teck, consumer durables, capital goods, auto and healthcare trading in the red, falling up to 0.95 per cent. The gauge had gained 377.52 points in the previous two sessions. Market remained closed yesterday on account of Independence Day.

On similar lines, the NSE Nifty declined by 25.05 points or 0.28 per cent to 8,647.10.

Brokers said market mood took a hit after a government data, which was released after trading hours on Friday, showed Industrial output grew by 2.1 per cent in June, although down from 4.2 per cent a year ago, on account of poor show by manufacturing and heavy contraction in capital goods.

Retail inflation shot up to nearly two-year high of 6.07 per cent in July, well above the RBI’s comfortable level, on surge in prices of food items as demand for sugar, oil & fats and spices rose ahead of the festival season.

A weak trend in other Asian markets on disappointing Japanese second-quarter GDP figures and profit-booking by investors also dampened sentiment here.

Hong Kong’s Hang Seng was down 0.12 per cent, Shanghai’s Composite index fell 0.35 per cent while Japan’s Nikkei shed 0.25 per cent in their early trade.

Meanwhile, the US Dow Jones Industrial Average however ended 0.32 per cent higher in Friday’s trade.