Sensex sheds 145 points in early trade

Mumbai, Sept 15:

The Sensex and the Nifty were trading down by nearly 0.7 per cent on heavy selling by funds and retail investors due to weak industrial production data and weak Asian cues.

Brokers said selling pressure emerged as the countrys industrial production growth slowed to a four-month low of 0.5 per cent in July but easing retail inflation to 7.8 per cent in August from 7.96 per cent in July, restricted the fall.

Rajesh Agarwal, Head-Research Eastern Financiers said in a report: "The markets are expected to start the week on a subdued note on the back of weak IIP data declared during the week-end. Although Consumer Price Index (CPI) was at a comfortable zone, markets would be keenly watching the Wholesale Price Inflation (WPI) data for August scheduled to be released on Monday. Further, stock-specific action could be seen after second instalment of advance tax payments by corporates start trickling in.''

At 11.30 a.m., the 30-share BSE index Sensex was trading down 196.51 points at 26,864.53 and the 50-share NSE index Nifty was trading down 53.8 points at 8,051.70.

Barring healthcare, all other BSE sectoral indices were trading in the red. Among them, metal, capital goods and oil & gas indices fell the most by 1.25 per cent, 0.71 per cent and 0.71 per cent, respectively. Only healthcare index was up 0.6 per cent.

Asian stocks stumbled to their lowest in five weeks on Monday after a batch of weak data out of China raised the spectre of a sharp slowdown in the world's second-biggest economy.

The Australian dollar, considered a liquid proxy for China plays, also took a hammering and slumped to a six-month low.

MSCI's broadest index of Asia-Pacific shares outside Japan dipped 0.8 per cent to the levels last seen on August 8. The index has fallen almost 4 per cent in a little over a week, from a near seven-year peak.

Australia's S&P/ASX 200 index shed 0.7 per cent, South Korea's Kospi fell 0.3 per cent and Hong Kong's Hang Seng slid 1.1 per cent. Mainland Chinese shares were 0.6 per cent lower.

Here is the original post:
Sensex sheds 145 points in early trade