Mumbai– Weak industrial data resulted in broad-based selling in the markets on Wednesday. With none of the sectoral indices managing to finish in the green, the benchmark Sensex closed 229 points lower.
The Index of Industrial Production (IIP) has declined 4.3 per cent in September 2019, compared to a growth of 4.6 per cent in the year-ago period. The contraction was steeper than street estimates and was the sharpest since the new series began in 2011.
Besides, investors remained cautious ahead of the Consumer Price Index (CPI) data, a key inflation data point that RBI looks at closely when adjusting lending rates.
“Post the recent rally, the gap between valuation and earnings growth has enlarged influencing investors to stay cautious ahead of heavy economic data being released this week. Weak economic data and concerns over slowdown in earnings growth is hurting investor sentiments,” said Vinod Nair, Head of Research, Geojit Financial Services.
The Sensex fell by 229.02 points, or 0.57 per cent, to 40,116.06 after flip-flopping between the high of 40,447.17 and a low of 40,061.23. The broader Nifty settled at 11,840.45, lower by 73 points.
Sun TV came under heavy selling pressure after it reported a significant drop in its quarterly advertising revenue. Its shares fell over 11 per cent on the NSE. Also, the Nifty media index settled 4.5 per cent lower. Dish TV fell over 10 per cent while Zee Ltd close nearly 5 per cent lower. (IANS)
