Sensex tumbles 117 points despite positive IIP data

Mumbai: The benchmark BSE Sensex fell over 117 points in early trade on Monday on continued capital outflows by foreign funds and selling by investors despite improved IIP numbers and steady inflation data.

A weak trend at other Asian markets after negotiations between Greece and its creditors broke down dampened sentiment.

The 30-share barometer, which had gained 54.32 points in the previous session on Friday, was trading down 117.46 points, or 0.44%, at 26,307.84 with IT, technology, consumer durables, power, banking, PSU and metal sectors leading the losses.

On similar lines, the NSE Nifty shed 38.05 points, or 0.47%, at 7,944.85.

Brokers said sentiment remained weak even as positive IIP data – industrial production grew at a 2-month high of 4.1% in April – failed to trigger buying.

Meanwhile, retail inflation edged up to 5.01% in May as against 4.87% in April. The Consumer Price Index stood at 8.33% in May 2014.

Shares of Cairn India today rose 0.50% to Rs 181.65 after the announcement of merger between metal and mining company Vedanta and the oil firm in a $2.3 billion all-share deal to create India’s largest diversified natural resources play.

Vedanta Ltd was also trading 0.92% higher at Rs 185.70.

Among other Asian markets, Hong Kong’s Hang Seng was down 0.68% while Japan’s Nikkei slipped 0.99% in early trade.

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