Sensex slips 365 points on poor IIP, global weakness

The Indian markets were under pressure due to negative global cues and weak July IIP data back home. The Sensex plunged 365 points and the Nifty fell 113 points at the close

Major headlines

July IIP at 3.3% versus 8.8%

Pipavav Defence soars in weak market

Tata Motors falls on resignation of group CEO



Indian indices

The Indian markets remained weak all throughout the day on fresh eurozone concerns. Worries that the Greek government may default on its debts and reports that Moody's Investors Service may downgrade France's largest banks over their exposure to Greece, pulled markets sharply lower. The trigger was India's factory output that plunged to the slowest pace in 24-months, causing a bout of selling that took the markets to new lows.

Reacting to IIP numbers and global weakness, investors booked profits across the board, which added pressure on the markets.

Sensex movements: The Sensex started the new week 199 points lower at 16668 (day’s high). The index fell further on continuous selling and remained in red whole day, hitting the day’s low of 16393 in afternoon session. The Sensex tumbled 365 points to close at 16502 and the Nifty stood at 4947, down by 113 points.

Market sentiment:

The market breadth stood very weak. Of the 2907 stocks traded on the BSE, 875 (30.10%) rose, 1929 (66.36%) dropped and 103 (3.54%) remained unchanged.

Viewing volumes

Indian shipbuilder - Pipavav Shipyard was traded the most with over 1.79 crore shares changing hands on the BSE. Following that a leading manufactures of trucks and buses in India - Ashok Leyland (0.42 crore shares), Indian telecommunication company - Reliance Communications (0.24 crore shares), wind turbine major - Suzlon Energy (0.23 crore shares) and India's second largest developer - Unitech (0.22 crore shares).

Sectoral & stock screening

It was all in red on the sectoral front. BSE CD declined by 3.43%, BSE Metal fell by 3.39% and BSE IT down by 3.27%. Remaining 10 sectors fell in the range of 0.18% to 3.13%.

In 'A' group stocks, Pipavav Shipyard up by 11.31%, Hindustan Unilever rose by 3.80% and Jain Irrigation surged by 3.33%. On the other side, Yes Bank down by 6.92%, Indiabulls Real Estate fell by 6.63% and HCL Technologies lost by 6.47%.

Global signals

The European stocks slumped on Monday amid concerns that Greece may have to default on its debt obligations, with the region's banking sector especially hard hit. The euro has also been deserted by investors, falling to a 10-year low against the yen.

The Asian stocks ended sharply lower on Monday, with some shares hitting multi-year lows, after renewed fears over Europe's sovereign-debt crisis led to steep selling in US. Kospi index was shut on Monday

The US stock futures pointed to a sharp fall on the Wall Street on Monday.