Low industrial growth, higher inflation drag Indian equities

New Delhi, Nov 13 (IANS) The double whammy of a fall in the industrial output growth and rising retail inflation dragged key Indian stock market indices on Friday. The mood was also affected by weak global cues.

The sensitive index (Sensex) of the Bombay Stock Exchange (BSE) opened lower on Friday at 25724.09 points, against the previous close at 25866.95. After oscilating in a narrow band, it finally closed 25,610.53 at points, with a loss of 256.42 points, or 0.99 percent.

The situation was similar at the National Stock Exchange. The broader 50-share Nifty opened at 7,762.45 points, against the previous close at 7,825.00 and finally settled at 7,762.25 points, to log a loss of 62.75 points, or 0.80 percent.

Of the 30 shares that go into the Sensex basket, only eight managed to stay afloat and as many as 22 ended in the red, data with the bourse showed. Coal India, Bharti Airtel and Dr. Reddy’s were the main gainers, while Vedanta, Cipla and Hindalco were the principal losers.

Among the 12 industry-specific indices only consumer durables and metals ended a tad higher. The other 10 ended in the red, with losses as much as 1.97 percent for capital goods, 1.61 percent for automobiles and 1.50 percent for fast-moving consumer goods.

Official data showed Thursday that India’s factory output growth decelerated to 3.6 percent in September from 6.4 percent in the month before, even as the annual retail inflation for October moved up significantly to 5 percent from 4.41 percent in the month before.

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