Sensex slumps 259 points ahead of IIP data

The benchmark BSE Sensex fell nearly 259 points in early trade as funds and retail investors booked profits amid a mixed trend overseas. 

Market sentiment was also influenced by investors treading cautiously ahead of July IIP data due to be released later in the day. 

The 30-share barometer fell by 258.84 points or 0.89% to 28,786.44 in early trade. 

The index had gained 118.92 points to close at 29,045.28 in the previous session. 

YES Bank stocks fell by 5.31% to Rs 1,260 after the company deferred its plans to raise $1 billion, citing extreme volatility in trading due to misinterpretation of new QIP guidelines. 

Profit booking in stocks of bank, auto, consumer durables, FMCG, metal and capital goods sectors had a negative impact on the trading sentiments, falling up to 1.11%. 

The NSE Nifty also declined by 86.35 points or 0.96% to 8,866.15. 

Brokers said besides profit booking by retail investors and funds, a mixed trend in global markets led to the decline of domestic stocks. 

A cautious stance by participants ahead of IIP data, also influenced the sentiment, they said. 

In Asia, Japan's Nikkei fell 0.19% while Shanghai Composite Index was up 0.07% in early trade on Friday. 

Hong Kong's Hang Seng index was up 1.00%. The Dow Jones Industrial Average ended 0.25% lower in Thursday's trade.