Sensex crashes as IIP data disappoints and global cues weigh

Key Indian equity indices opened in the red on account of poor showing by the manufacturing sector in April that dragged the country's factory output down. Data on industrial production was released on Friday after the closure of markets. Its impact, accordingly, came on Monday. Global cues also contributed to the losses.The 30-scrip sensitive index (Sensex) of the BSE opened at 26,468.27 points against the previous close at 26,635.75 points. Earlier in the day, the index was ruling at 26,340.22 points, down 295.53 points, or 1.11 per cent.

The wider 51-scrip Nifty of the National Stock Exchange (NSE), which had closed on Friday at 8,170.05 points, was ruling at 8,091.90 points, down 78.15 points, or 0.96 per cent. On the BSE, 25 out of the 30 stocks that make up the Sensex basket were in the red, while on the NSE, 41 scrips of Nifty declined and 10 managed to buck the trend. "The week ahead is likely to take cues from the US Federal Reserve meet and progress of monsoon. Retail inflation data to be released on Monday will be crucial for further move by RBI (Reserve Bank of India) as the governor had indicated that there was an upward pressure to inflation," Angel Broking said.

During the next few weeks, the global developments that will be watched are if Britain should leave or remain in the European Union (Brexit), as also the US Federal Reserve meeting on Tuesday and Wednesday. The fall in the index was led by losses in ICICI Bank, ITC, Axis Bank, and Tata Motors. The Nifty50 slipped below its crucial support level of 8,100 weighed down by losses in realty, power, oil & gas, capital goods, banks, and auto stocks.