BSE opens 546 points down on weak Asian cues; ahead of IIP, inflation data

BSE opened down nearly 546 points on Monday morning, continuing the downward streak, taking a hit from the weak cues from the international markets.

Markets opened down 546 points at 28,251.31 from Friday's close.

On Friday, the BSE had closed the week down 248.03 points from the previous day's close, erasing the 17-month high (above 29,000-level) that the benchmark index had reached earlier in the week.

In early trade, markets were volatile and were trading 400 - 450 points below the red line.

Asian markets took a hit on at week open once talk from the US about a probable rate hike intensified. Reports that the US Federal Reserve may hike its interest rates, thereby tightening the liquidity around the world, took markets down.

MSCI's broadest index of Asia-Pacific shares outside Japan fell 2.2%, pulling away from a 13-month peak. It was the largest daily drop since the frenzy caused by Britain's vote in late June to leave the European Union. Shanghai followed with a fall of 1.7%, while Australian stocks sank 2.2%. The Nikkei 225 lost 1.5% as the yen firmed due to risk aversion and yields on 10-year JGBs briefly hit the highest since March before paring losses, a Reuters copy said.

Markets will be tracking key inflation and industrial production data expected later in the day. While inflation is likely to have cooled in August, on the back of easing food prices and adequate rains, it is still likely to be above the central bank and government's inflationary target of 4%. In July the consumer inflation was at 6.08%.

Industrial production is also estimated to have eased in July.

The top losers on the BSE were, JP Associates (7.10%), HDIL (6.44%), JP Infratech (5.68%), Unitech (4.81%).

The broader National Stock Exchange (NSE) Nifty was at 8735.85, down 130.85 points or 1.48% from the previous close.

Bombay Stock Exchange - BSE

National Stock Exchange of India Ltd (NSE)