Sensex sinks on weak IIP growth and Euro debt crisis

The benchmark indices continued to be weak in the afternoon trade. Selling pressure triggerd across the sectors as the domestic market was disappointed on weak Infosys results and sluggish May industrial output. Global cues too was dampener as heavy sell off was seen in early trade of European markets.

The BSE IT index has underperformed all other sectoral indices; it was down over 3% on the back of below expectation Infosys Q1 results. The BSE realty, auto, capital goods, metal and bankex were down 1-2%.

Meanwhile on the global front, European markets tumbled over 2% in the opening trade due to rising concerns of Italy debt crisis. Italy debt-to-GDP ratio of 120%, which is second only to Greece within the EU and Italy faces 175 billion euros in debt maturities this year and has 1.6 trillion euros of bonds outstanding, the world