(RTTNews) - Friday, the Indian market closed sharply lower reacting to dismal industrial production data and the firming up of crude oil price.

Despite opening on a positive note, the Indian market pared gains within a few minutes of trading. After remaining subdued, the market extended losses as dismal industrial production numbers and a rise in price of oil weighed on sentiment. Profit booking in IT stocks and heavy selling in select index heavy weights dragged the markets lower towards close of the session.

Meanwhile, the wholesale price inflation surged to 11.89% in 12 months to June 28 and was in line with market expectations. Industrial production rose 3.8% in May 2008, much lower than revised 6.2% growth in April 2008. Additionally, crude oil jumped to $144.18 a barrel on Friday amid growing worries of threats to supplies from Nigeria and Iran, as well as concern over a Brazilian oil workers strike next week.

Amid an intra-day volatility of 715 points, the BSE Sensex closed at 13,470, down 456 points or 3.28%. Meanwhile, the S&P CNX Nifty closed down 113 points or 2.72%.

On the BSE, the mid-cap index declined 2.01%, the small-cap closed down 1.40% and the broad-based BSE 500 index lost 2.81%. The market breadth was negative with 994 stocks advancing compared to 1656 stocks that declined. All the sector indexes ended in red. IT, capital goods, technology and power stocks are among the notable decliners.

Sensex stocks Ambuja Cement (up 1.90%), HDFC Bank (up 1.21%), Hindalco (up 1.01%), Bharti Airtel (up 0.44%) and Tata Motors (up 0.04%) advanced, while Jaiprakash Associates (down 8.48%), TCS (down 8.03%), Satyam Computers (down 7.19%), Infosys (down 7.18%), Larsen & Toubro (down 6.89%), Reliance Infrastructure (down 6.28%), HDFC (down 5.52%), Tata Steel (down 4.69%), Wipro (down 4.34%), ICICI Bank (down 4.09%), ONGC (down 3.65%), NTPC (down 3.00%), BHEL (down 2.68%) and ITC (down 2.65%) were among the major decliners.

Welspun-Gujarat Stahl Rohren lost 2.49% even as the company bagged new orders worth Rs. 3000 crores. Suprajit Engineering advanced by 1.67% after the promoters raised their stake to 50% by acquiring shares in the open market. Edelweiss Capital declined by 5.57% even as the company reported a 52% growth in net profit in June quarter.

IL&FS Investment Managers rose 3.72% after the company approved the issue of bonus shares to its shareholders. Lotus Eye Care Hospital, after listing at Rs. 35, closed at Rs. 35.50, a discount of 6.58% to the issue price. Bharat Heavy Electricals declined by 2.68% even as the company bagged new contracts worth Rs. 2175 crore.

Bharti Airtel rose 0.44% on reports that the company added 2.5 million new subscribers in June 2008. Patel Integrated Logistics lost 1.12% after the company acquired some property in Thane District. Indian Bank declined 2.59% after the Bank raised its term deposit rates.

Infosys plunged Rs. 130 or 7.18% despite the company posting better than expected profit for June. Analysts attributed the decline to profit booking by traders and a cautious outlook given by the company. The company revised the guidance upwards in rupee terms, but kept the same intact in dollar terms.

Asian markets closed mostly higher boosted by a report that the US government is weighing the takeover of top US mortgage lenders Fannie Mae and Freddie Mac. Except for the Chinese Shanghai Composite index (down 0.65%) and the Japanese Nikkei 225 index (down 0.21%), all the other markets ended higher. Hong Kong’s Hang Seng index rose1.66%, while the South Korean KOSPI index closed up 1.96%.

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