Markets End on a Negative Note

Indian markets made a marginal recovery in late noon deals. However, heavyweights kept on witnessed selling pressure. The Sensex finally ended down 365 points or 2 per cent at 16,502. Nifty shed 113 points at 4,946. IIP data further dampened investor sentiments. Data showed that industrial growth has fallen to a meager 3.3 per cent in July 2011 on account of poor performance mainly by capital goods, manufacturing and mining sectors reflecting sluggishness in the economy. Markets would be looking ahead at the RBI's monetary policy review on Friday and the corporate advance tax payments on Thursday. On the Global front, most markets dipped on fears that the Greek government may default on its debts. Worries about France's rating being cut by Moody's also played spoilsport. Greece on Sunday slapped a new tax on real estate to plug a 2011 budget hole. In Asia, Hang Seng dropped 4.2 per cent to 19,031. Nikkei and Straits Times shed around 2.5 per cent each. In Europe too markets touched 26-month lows. CAC tanked over 3 per cent, followed by DAX and FTSE which were down 1-2 per cent each. All the sectoral indices ended in the red with the BSE metal index skidding 3.6 per cent to 11,862. Consumer durables, IT, banking and realty indices also dropped over 3 per cent each. The BSE market breadth remained extremely negative with 1,909 shares on the declining side and 877 on the advancing side. Around 2,907 shares were traded in total.