Sensex falls 169 pts on weak earnings, IIP data
The Bombay Stock Exchange benchmark Sensex today fell 169 points on sustained selling by funds on concerns over sluggish corporate earnings and weak industrial growth.business Updated: Nov 11, 2011 18:28 IST
The Bombay Stock Exchange benchmark Sensex today fell 169 points on sustained selling by funds on concerns over sluggish corporate earnings and weak industrial growth.
The Sensex, which had lost 207.43 points in the previous session, fell further by 169.28 points to 17,192.82, pulled down by banking and metal sectors. The gauge touched the day's low of 17,096.84.
Similarly, the broad-based National Stock Exchange index declined to 5,142.25, before ending lower by 52.20 points to 5,168.85.
Brokers said weak factory output data for September released Friday added to investor fears of slowing growth as they are already disappointed by sluggish second quarter corporate earnings.
The Index of Industrial Production (IIP) in September grew by 1.9% -- the slowest pace in two years -- hurt by record increases in interest costs and a global slowdown.
Besides, brokers said, the second quarter earnings posted by Tata Steel, DLF Ltd and Ranbaxy Laboratories missed market estimates and dampened market sentiment.
The BSE banking index suffered the most by losing 3.03% to 10,686.97.
The metal sector index was second worst performer by losing 2.33% to 11,270.38 as Tata Steel fell by 4.19% to Rs 430.
Major losers included Larsen and Toubro, ICICI Bank, BHEL, Hindalco, Infosys Ltd., ONGC, Sterlite Industries, Tata Motors, Maruti Suzuki, Jindal Steel and HDFC Ltd.
Bucking the trend, Sensex heavyweight Reliance Industries shot up 2.23%.