Sensex ends 40 pts lower as June IIP data disappoints

The BSE benchmark index, which had gained 102 points at the outset, started paring gains on reports that industrial output declined in June by 1.8 per cent, the third fall in four months.

The 30-share Sensex was dragged down by losses in Bharti Airtel which shed 6.40 per cent today after losing 6.60 per cent yesterday on quarterly profit decline.

SBI and HDFC losing in the 3.6-4.3 per cent range also soured the marked mood further. Sensex settled at 17,560.87, lower by 39.69 points against previous day's close.

"Industrial production declined 1.8 per cent in June... considerably weaker than market expectations of a gain of 0.4 per cent," said Barclays.

Stocks of refinery, banking, and consumer durables sectors ended lower while FMCG, metal and auto gained.

Brokers said investors remained concerned about lower- than-expected quarterly earnings in bluechips.

"The international markets remained sluggish with most of the European markets trading flat," said Milan Bavishi, Head Research, Inventure Growth & Securities.

The broad-based National Stock Exchange index Nifty declined by 15.05 points, or 0.28 per cent to 5,322.95. It shuttled between 5,368.20 and 5,312.10 range during the day.