Sensex melts 238 pts on disappointing macro data, Asian cues

Market benchmark BSE Sensex tanked over 238 points in early trade today as investors cut down their bets after industrial production in March plunged to 0.1 per cent and retail inflation jumped to 5.39 per cent in April.

A weak trend on other Asian bourses, tracking overnight losses in the US and European markets, also weighed on the trading sentiment here, brokers said.

The 30-share barometer, which had gained 193.20 points in the previous session, was trading lower by 238.12 points, or 0.92 per cent, at 25,552.10 with all sectoral indices led by metal, technology, banking, PSU and FMCG sector stocks leading the decline by falling up to 1.37 per cent.

The broader NSE Nifty cracked below the 7,900-mark by falling 71.05 points to 0.90 per cent to 7,829.35.

Growth in industrial production plunged to 0.1 per cent in March due to poor performance of manufacturing and mining sectors coupled with sharp decline in output of capital goods, while retail inflation soared to 5.39 per cent in April on higher food prices, reversing a downward trend seen in recent months.

Among other Asian markets, Hong Kong's Hang Seng was down 0.79 per cent while Japan's Nikkei fell 0.18 per cent in early trade. Shanghai Composite Index, however, was up 0.04 per cent.