Industrial output contracted in April, and Asian markets were trading at two-month lows on Monday.
The benchmark BSE Sensex dropped by nearly 250 points on Monday morning following weak Asian cues and a contraction in industrial output data released last week.
Asian markets were in the red on Monday, trading at two-month lows as global markets awaited the outcome of key central bank meetings. In early morning trade, the BSE Sensex was trading at 26,359.55, down 276.20 points or 1.04% lower from Friday's close.
On BSE, the top losers were ICICI Bank (2.57%), Tata Steel (1.91%), Hindalco Industries (1.91%), Bank of Baroda (1.88%) and SBI (1.85%).
The US Federal Reserve, Bank of England, Swiss National Bank and the Bank of Japan will meet this week. All are expected to hold monetary policy steady against a backdrop of caution heightened by the global impact from a possible Brexit, a Reuters report said. Global markets have also been in a tizzy due to heightened fears that the UK may vote to leave the European Union which will have longstanding economic, political and geopolitical impact across the world.
Domestic markets took cues from the weakness in the global markets and went into a tailspin on Monday.
Domestic industrial output data released last week, showed that nine out of 22 industries considered for computing the data contracted in April. The Index for Industrial Production (IIP) contracted 0.8% in April, the third fall in the last six months since November 2015. Industry body Ficci and India Inc have raised concerns about industrial output growth, saying that industrial revival is a major challenge and may take a while.
Later in the day, markets are likely to remain in the red unless some major indicator changes the tide.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
 "Representational image")
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}