Sebi-Irda row casts shadow on markets, Sensex closes 80 points down

Markets took a breather today and the benchmark Sensex slipped 80 points as sentiment was subdued amid a clash between the two regulators — Sebi and Irda — over an equity-linked insurance product.

Further, over 15% growth in industrial output for February failed to lift the sagging market.

The 30-share BSE index Sensex was down 80.14 points or 0.45% at 17,853 points, with 18 components declining. The index had briefly remained positive in the opening trade, rising as much as 62.11 points to 17,995.25 level.

The 50-share Nifty Index of the National Stock Exchange declined by 0.41% to 5,339.70 points.

Analysts said the tussle between the two regulators over regulating equity-linked insurance product Ulips brought in some negativity in the market.

"Negative investor sentiment over the regulation of Ulips by the two regulators and lower-than-expected IIP data took a hit on stock markets," Ashika Stock Broking Research head Paras Bothra said.

India's factory output rose 15.1% in February, from 0.2% a year ago, helped by stimulus measures and robust domestic  demand.

Last week, the barometer had recorded its ninth straight weekly gain — its best since March-June 2009 when it rose for 14 consecutive weeks.

Financial sector stocks edged lower on fears of hardening interest rates at the central bank's monetary policy review scheduled on April 20.