The benchmark Nifty slipped below the crucial support level of 4,800 and the Sensex was trading below the psychological level of 16,000 on selling pressure after the government announced disappointing Oct IIP data.
The losses were led by capital goods, banks and metal shares along with index heavyweight Reliance Industries.
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(Updated at 11:08 Hrs)
Markets slipped into the red and have extended losses following the announcement of disappointing Index of Industrial Production data for October. The October IIP data has come in at -5.1% which is much below the street expectation. The IIP data for October last year was at 11.4%.
Markets reacted positive in the opening trades tracking EU Summit outcome. Globally, markets have made an impressive gain.
By 1130, Sensex plunged by 83 points at 16130, and the Nifty down 29 points or 0.33% at 4838 levels.
The losses were led by capital goods shares after data showed that capital goods growth was -25.5% year-on-year. Among the capital goods majors, L&T was down 1.7% and Bharat Heavy Electricals eased 0.5%.
Index heavyweight Reliance Industries was down 1.5%.
In the banking space, SBI fell 1.6% and ICICI Bank slipped 1%.
The US markets on Friday zoomed, as US Consumer Confidence report hit a 6-month high. Euro zone's latest plan to solve its debt crisis and the euro leader’s agreement to closer fiscal ties also cheered investor’s sentiments. All three indices posted an impressive gain for the second week.
The Dow Jones Industrial Average ended Friday up 1.55% at 12184.26, the S&P 500 index gained 1.69% at 1255.19 and the Nasdaq Composite index was up 1.94% at 2646.85.
Meanwhile, Asian markets continue to trade in positive terrain. Hang Seng, Nikkei, Seoul Composite, Taiwan Weighted Straits and Shanghai Composite Times have advanced between 1-2% each.
Local Indices, however have not mirrored their peers. Some local concerns have kept the sentiments in a cautious mode. The IIP numbers will be announced today.
Among the Index heavyweights, Tata Power and Bajaj Auto have plummeted by nearly 2%. Amongst gainers, ONGC, ITC and Wipro have gained by nearly 1% each.
On the sectoral front, BSE Metal index has melted by almost 1%. Coal India, Hindalco and SAIL have crashed by 1%.
Amongst gainers, BSE Technology, FMCG and Realty indices have gained by almost 1% each.
Tech major Infosys, TCS and Wipro have spurted by 1% each.
Meanwhile, BSE Midcap index has slipped by 0.13% whereas BSE Smallcap index is trading marginally higher.
Kinetic Motor Company has rallied after board has approved the merger of Kinetic Motor Company Limited (KMCL) with Kinetic Engineering Limited (KEL) at an exchange ratio of 7.75:1.
IL&FS Transportation Networks (ITNL) surged by 3% to Rs 172 on acquiring stake in a state-owned Chinese enterprise. The landmark deal is estimated at $150 million (approx Rs 782 crore).
Top losers on the Midcap space include Emami, Kwality Dairy, SREI Infra, Fortis Health and SKS Microfin, all sloping down by 2-7%.
Few losers on the BSE Smallcap index include Jamna Auto, Nirlon, Neha Internatioal, R M Mohite Ind and Bhansali Eng, declining by 5-7%.
The market breadth in BSE has turned weak with 1040 shares advancing and 1648 shares declining.
