Nifty tumbles on disappointing IIP data

It was a manic Monday on Dalal-Street, as the NSE Nifty plunged over 100 points starting off an eventful week on a bad note. It was the second successive trading session where the Indian markets closed with heavy losses. The NSE Nifty ended below the 5000 mark, while the BSE Sensex just managed to close above the 16500 mark.

Markets opened with a gap down, tracking overnight losses in the US and the Asian markets. As the day progressed, disappointing IIP data further dampened the sentiment. The Industrial Production for the month of July fell to 3.3% against market expectation of 6.6%.



The capital Goods index was the most hit, as some of the important items of capital goods showed highly negative growth during the current month and thus contributing to the low growth of the overall index for the month. Stocks like L&T, Crompton Greaves fell over 3% each, while BHEL declined by 1.5%. Among the other major laggards were BSE Metal, BSE IT and Realty index which fell over 3% each.

Even the Mid-Cap and the Small-Cap index fell 1.9% each.

Finally, the BSE Sensex ended at 16,502, losing 365 points. It had earlier touched a day's high of 16,668 and a day's low of 16,393. It opened at 16,668. The NSE Nifty closed at 4,942, down 117 points.

"In the coming day’s market direction would depend on important events which are lined up, including August inflation and Advance Tax numbers. Critical among them will be the RBI policy meet on the 16th of September," says Amar Ambani, Head of Research, IIFL - India Private Clients.