Sensex plummets 263 pts on weak data, global cues

The benchmark BSE Sensex fell by over 263 points and the NSE Nifty dipped below the 8,100-mark in early trade as investors cut down their bets on disappointing macroeconomic data and weak trend in Asian markets.

The 30-share barometer dived by 263.24 points or 0.98 per cent at 26,372.51 with all the sectoral indices led by capital goods, banking and auto in the red, falling up to 1.34 per cent. It had lost 384.91 points in the previous two sessions. On similar lines, the NSE Nifty cracked below 8,100-level by falling 79.10 points or 0.96 per cent to 8,090.95.

Brokers said market mood took a hit after a government data, which was released after trading hours on Friday showed industrial output contracted by 0.8 per cent in April, the first decline in three months, due to drastic fall in capital goods production and manufacturing activities.

Meanwhile, inflation data, is slated for later in the day. A weak trend in other Asian markets in line with sell-off in the US and Europe on Friday, on renewed worries about the global economy and uncertainty over Britain’s future in the European Union, also dented sentiment here, brokers said.

Caution also prevailed ahead of the US Federal Reserve meeting next week, they added.

Hong Kong’s Hang Seng was down 2.56 per cent, Shanghai’s Composite index fell 0.67 per cent while Japan’s Nikkei shed 2.61 per cent in their early trade. Meanwhile, the US Dow Jones Industrial Average ended 0.67 per cent lower in Friday’s trade.