Markets settle lower ahead of IIP data release; Sensex falls 230 points

Mumbai, Oct 11: Equity benchmark indices Sensex and Nifty ended lower on Friday, dragged by selling in banking, utility and financial stocks as investors turned cautious ahead of the release of industrial production data.

Unabated foreign fund outflows and a depreciating rupee amid geopolitical tensions also hit investors' sentiment, traders said.

However, intense buying in metal stocks amid reports that China will pump more capital in fresh fiscal stimulus to boost its economy restricted the losses, they added.

In a volatile trade, the 30-share BSE Sensex fell 230.05 points or 0.28 per cent to close at 81,381.36. During the day, it declined 307.26 points or 0.37 per cent to a low of 81,304.15.

A total of 2,143 stocks advanced, while 1,751 declined and 117 remained unchanged on the BSE.

The NSE Nifty slipped 34.20 points or 0.14 per cent to 24,964.25. It hit an intraday low of 24,920.05.

"The market traded sideways due to a lack of fresh triggers for decisive momentum. The uptick in the US 10-year yield due to the unexpected rise in US core inflation and caution ahead of the result season added layers of sentiment in the market.

"The ongoing geopolitical challenges influenced FIIs to shift their focus towards the affordable markets, which is impacting the domestic market liquidity," Vinod Nair, Head of Research, Geojit Financial Services.

From the Sensex pack, Tata Consultancy Services, Mahindra & Mahindra, ICICI Bank, Maruti Suzuki India, Power Grid, Axis Bank and Adani Ports & Special Economic Zones were among the laggards.

On the other hand, HCL Technologies, Tech Mahindra, JSW Steel, Hindustan Unilever, Infosys and Titan were among the gainers.

"Investors traded with caution on the last trading day of the week on worries any escalation in the Iran-Israel conflict over the weekend could fuel uncertainty going into the next week.

"Optimism could return once the earnings season picks up momentum and results are in line with expectations, else the mood could remain cautious with a negative bias in the near to medium term," Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said.

Bandhan Bank shares surged over 12 per cent after the Reserve Bank of India (RBI) approved the appointment of Partha Pratim Sengupta as its MD and CEO for three years.

On the contrary, the scrip of Tata Consultancy Services fell 2 per cent after the country's largest IT firm's September quarter earnings failed to cheer investors.

The government is scheduled to release Index of Industrial Production (IIP) data later in the day.