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Sensex, Nifty close lower on inflation, industrial output worries

By Reuters

  • 13 Feb 2020
Sensex, Nifty close lower on inflation, industrial output worries
Credit: Reuters

Indian shares snapped two days of gains and ended lower on Thursday due to concerns related to growth after data showed a surprise drop in industrial output for December and a rise in January inflation to a six-year high.

The broader NSE Nifty 50 index closed down 0.22% at 12,174.65 and the benchmark S&P BSE Sensex declined 0.26% to 41,459.79.

Annual retail inflation in Asia's third-largest economy rose to 7.59% in January, while December industrial output contracted 0.3%, after rising for the first time in three months in November.

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The data worried investors, already grappling with slowing growth. India's central bank has downwardly revised India's growth forecast for the first half of the next fiscal year to 5.5%-6.0%. The earlier projection was 5.9%-6.3%.

Most sectors traded negative, but the biggest drags were private-sector banks, with their main sub-index closing down 1.36%.

The Nifty financials index shed 0.73%.

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Among stocks, IndusInd Bank was the top laggard on the Nifty, dropping 3.65%, while Yes Bank emerged as the top gainer rising 5.68%.

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