Sensex down 116 points on low factory output and high oil prices

Mumbai: The BSE Sensex fell for the third straight session on Friday, down 116 points at 18,269, on low factory output and weak overseas markets amid upsurge in global crude oil prices.

Heavyweights such as RIL, ITC, L&T, ICICI Bank, SBI, HDFC and Tata Steel pulled down the Sensex.

The Bombay Stock Exchange 30—share indicator initially touched a high of 18,399.02 but fell to a two-week low of 18,182.90 before recovering some ground.

It settled at 18,268.54, down 116.36 points or 0.63 per cent. It had lost over 110 points in last two sessions.

The NSE 50-issue Nifty also declined 35.25 points or 0.64 per cent to end at 5,485.80.

The fall was triggered by reports that the industrial growth rate shrunk by more than half to 6.3 per cent in April, on poor show by the manufacturing and mining sectors, a development that the government described as “disturbing”.

The Index of Industrial Production (IIP), based on the new series (with 2004-05 base year), declined to 6.3 per cent in April from 13.1 per cent in the same period last fiscal.

As per the old data (with base year 1993—94), the decline was much steeper, with the IIP nosediving to 4.4 per cent in April, from 16.6 per cent in the year ago period.