Mumbai: Snapping a two-session rally, the BSE benchmark index Sensex on Friday fell by 82 points to close at 17,748.69, on disappointing industrial output growth.
The Sensex, which had gained over 208 points in the last two trading sessions, fell by 82.06 points, or 0.46 percent, to 17,748.69, after dismal industrial production hit the investor sentiment.
Factory output as measured by the Index of Industrial production grew by a mere 1.8 percent in December, 2011, due to contraction in mining and capital goods sectors and a lower manufacturing sector growth.
Finance Minister Pranab Mukherjee described the industrial output growth as "disappointing" and expressed hopes that the figures would show some improvement in the coming months.
Global markets also exhibited weak trends after European leaders held back a debt bailout for Greece pending a parliamentary vote on an austerity plan. Traders said companies cutting their earnings forecasts also weighed down on the sentiment.
The broad-based National Stock Exchange index Nifty also fell by 30.75 points, or 0.57 percent, to 5,381.60 as investors booked profits from recent gains.
The two heaviest stock on the benchmark with a combined weightage of 20 percent -- Reliance Industries and Infosys -- dropped by 1.23 percent to Rs 842.15 and by 0.87 percent to Rs 2,782.70, respectively.
However, Tata Steel gaining the most in more than a week surging 5.30 percent to Rs 475 and Bajaj Auto by 2.10 percent to Rs 1,736.55, saved the market from any major fall.
Prominent losers in the index kitty sector were Hero MotoCorp, Maruti Suzuki, Mahindra and Mahindra, Gail India, HDFC Bank, ICICI Bank, State Bank of India, Larsen and Toubro, BHEL, Cipla and Hindalco Industries.
The realty sector index suffered the most by losing 0.93 percent to 1,887.49, followed by oil and gas index by 0.80 to 8,770.65. Healthcare index lost 0.71 percent to 6,347.10 and Banking index by 0.68 percent to 11,986.92.