Sensex falls 900 points, Nifty below 14,800 over weak macroeconomic data

The S&P BSE Sensex fell 900 points, or 1.8 per cent, to 49,860 levels and the Nifty50 index gave up the 14,800-mark.

Domestic indices were on Monday trading nearly 2 per cent lower in the afternoon session over weak macroeconomic data amid a dip in Index of Industrial Production (IIP) and rise in inflation. The S&P BSE Sensex fell 900 points, or 1.8 per cent, to 49,860 levels and the Nifty50 index gave up the 14,800-mark. Among the laggards on Sensex were Bajaj Finance, Bajaj Finserv, HDFC, State Bank of India, and HDFC Bank. The Nifty sectoral indices were in the red and the Nifty Bank index was down the most at 2.7 per cent.

A file photo of the BSE as Sensex soars over 1,800 points; currently at 48,172.85 after Union Budget 2021-22, in Mumbai on Monday. (ANI Photo)

Reuters cited Aishvarya Dadheech, a fund manager at Ambit Asset Management, as saying that rising cases of the coronavirus disease, a jump in core inflation and a fall in industrial output weighed on market sentiment.

Data released by the government after market hours on Friday showed annual retail inflation rose to 5.03% in February on higher fuel prices, which could pressure the central bank's accommodative stance. Data also showed industrial output as measured by the Index of Industrial Production contracted 1.6% year-on-year in January.

India on Monday reported the year's biggest daily rise in cases of the coronavirus disease at 26,291 amid a resurgence in infections. It is the third-worst affected country globally with more than 11.38 million cases, behind the United States and Brazil.

Sensex ended 487.43 points, or 0.95 per cent lower at 50,792.08, and Nifty tanked 143.85 points or 0.95 per cent to end at 15,030.95 on Friday.

(With agency inputs)