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Sensex dips below 16k after 2 weeks

Mumbai: Negative growth in factory output pulled down the BSE Sensex by 343 points or 1.12 per cent today to below the 16k level after two weeks, as investors continued the selling pressure for the third session in a row amid weak global markets. The Sensex has lost over 1,000 points in the last three sessions, eroding investor wealth by nearly Rs 3 lakh crore.

The BSE 30-share benchmark, which had lost 664 points in the past two trading sessions, fell further by 343.11 points to end the day at 15,870.35, closing below the 16k level after November 25. The broad-based National Stock Exchange index Nifty lost 102.10, or 2.10 per cent to 4,764.60.

As per the government data released here, industrial output as measured by IIP registered a negative growth of 5.1 per cent in October – lowest in over two years – due to rising interest rates, high prices and global uncertainties. Factory output had grown by 11.3 per cent in October last year.

"Market participants turned their attention inwards. Sensex went into a tailspin after an initial spike, thanks to weak October IIP numbers. Weakness in Index of Industrial Production shows weakness in manufacturing demand," said Milan Bavishi Head Research Inventure Growth and Securities.

Except BSE-IT, all the other 12 sectoral indices fell by up to 4.14 per cent. Metals, banking, refinery, PSU, realty, power and auto sectors were the major losers. Small cap and Mid-cap indices were also settled lower by 1.54 per cent and 1.90 per cent due to persistent selling pressure from retail investors. Analysts said weak European markets also weighed down the investor sentiment. Asian stocks, however, settled mixed.

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