Sensex falls 259 points in early trade ahead of IIP data

Mumbai : The benchmark BSE Sensex fell nearly 259 points in early trade today as funds and retail investors booked profits amid a mixed trend overseas. Market sentiment was also influenced by investors treading cautiously ahead of July IIP data due to be released today. The 30-share barometer fell by 258.84 points or 0.89 per cent to 28,786.44 in early trade today.

The index had gained 118.92 points to close at 29,045.28 in the previous session. Yes bank stocks fell by 5.31 per cent to Rs 1,260 after the company deferred its plans to raise USD 1 billion, citing extreme volatility in trading due to misinterpretation of new QIP guidelines. Profit booking in stocks of bank, auto, consumer durables, FMCG, metal and capital goods sectors negatively impacted trading sentiments, falling up to 1.11 per cent. The NSE Nifty also declined by 86.35 points or 0.96 per cent to 8,866.15.

Brokers said besides profit booking by retail investors and funds, a mixed trend in global markets led to the decline of domestic stocks. A cautious stance by participants ahead of IIP data, also influenced the sentiment, they said. In Asia, Japan’s Nikkei fell 0.19 per cent while Shanghai Composite Index was up 0.07 per cent in early trade today. Hong Kong’s Hang Seng index was up 1.00 per cent. The Dow Jones Industrial Average ended 0.25 per cent lower in yesterday’s trade.