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Sensex drops over 250 points, Nifty below 7,750 on weak IIP data

The S&P BSE Sensex slid over 250 points in morning trade on Friday following muted trends seen in other Asian markets as commodity slump drew the markets lower.

The Nifty50 broke below its essential psychological support level of 7,750.

HDFC Securities in a research note said, "The Nifty is expected to show sharp declines and reach the previous bottom of around 7540 levels with faster retracement (within 3-4 weeks). This could be as per the time projection of the previous sharp decline of mid of Aug to early Sept 15."

The broader market also saw selling pressure with the BSE midcap and smallcap indices losing 1 and 0.5 per cent, respectively.

Most other Asian markets traded weak tracking similar weakness seen in US markets overnight controlled by the crash in commodity prices and the fall in crude oil.

Japan's Nikkei plummeted to its 7-week low, and was trading lower by 0.9 per cent. South Korea's Kospi was down 1.05 per cent while Hong Kong's Hang Seng index traded with losses of 2.22 per cent. Wall Street underwent its worst session in over a month on Thursday as lower commodity prices weighed on energy and materials stocks.

A list of top ten stocks that are in focus today include SpiceJet Ltd, HDFC Ltd, M&M Ltd, Indiabulls Housing Finance Ltd, Unitech Ltd, National Fertilizers Ltd, Tata Steel Ltd, Rashtriya Chemicals and Fertilisers Ltd, NALCO Ltd and Muthoot Capital Services Ltd.