Drop in factory output drags key Indian equity indices

Key Indian equity indices opened in the red on account of poor showing by the manufacturing sector in April that dragged the country's factory output. Data on industrial production was released on Friday after the closure of markets. Its impact, accordingly, came on Monday. Global cues also contributed to the losses.

The 30-scrip sensitive index (Sensex) of the BSE opened at 26,468.27 points against the previous close at 26,635.75 points. Around 10:45 am, the index was ruling at 26,340.22 points, down 295.53 points, or 1.11%.

The wider 51-scrip Nifty of the National Stock Exchange (NSE), which had closed on Friday at 8,170.05 points, was ruling at 8,091.90 points, down 78.15 points, or 0.96%.

On the BSE, 25 out of the 30 stocks that make up the Sensex basket were in the red, while on the NSE, 41 scrips of Nifty declined and 10 managed to buck the trend.

"The week ahead is likely to take cues from the US Federal Reserve meet and progress of monsoon. Retail inflation data to be released on Monday will be crucial for further move by RBI (Reserve Bank of India) as the governor had indicated that there was an upward pressure to inflation," Angel Broking said.

During the next few weeks, the global developments that will be watched are Britain's June 23rd referendum if it should leave or remain in the European Union (Brexit), as also the US Federal Reserve meeting on Tuesday and Wednesday.