Sensex extends losses,down 30 points on weak IIP data,global cues

Mumbai: Continuing its downward trend, the benchmark BSE Sensex fell over 30 points in early trade as investors indulged in cutting down their bets on disappointing macroeconomic data and weak trend in Asian markets.

The 30-share barometer declined by 30.22 points or 0.10 per cent to 28,323.32 with metal and FMCG stocks trading in the red, falling by up to 0.43 per cent. The gauge had lost 691.74 points in the previous two sessions. The market remained closed yesterday on account of “Id-ul-Zuha”.

On similar lines, the NSE Nifty shed 7.25 points or 0.08 per cent to 8,708.35. Brokers said market mood took a hit after IIP data, which was released after trading hours on Monday, showed industrial output contracted by 2.4 per cent in July, registering the worst performance in eight months mainly on account of declining output in manufacturing and capital goods sectors.

Meanwhile, Retail inflation eased to a five-month low of 5.05 per cent in August. A weak trend in other Asian bourses, in line with overnight losses at the US market following fall in global crude oil prices, also dampened sentiment here, they said. Hong Kong’s Hang Seng was down 0.10 per cent, Shanghai’s Composite index fell 0.30 per cent while Japan’s Nikkei shed 0.24 per cent in their early trade. The US Dow Jones Industrial Average ended 1.41 per cent lower in yesterday’s trade.