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Sensex, Nifty End Lower On Weak Macro Data

Indian shares fell on Thursday to snap a two-day winning streak after government data showed a surprise drop in December industrial output and a rise in January inflation to a six-year high.

Tepid global cues also weighed on markets after the number of deaths and new cases from China's coronavirus outbreak rose dramatically - fueling speculation that the severity of the outbreak has been under-reported.

Some 242 deaths from the new coronavirus were recorded in the Chinese province of Hubei on Wednesday. There was also a huge increase in the number of cases, with 14,840 people diagnosed with the virus.

Officials in Hubei said they were broadening their definition for COVID-19 cases by including people "clinically diagnosed" with the virus in the daily tally.

The sudden increase in number of cases in the Hubei province and the fastest rise in the daily death count since the outbreak boosted demand for traditional safe-haven assets such as gold, the Japanese yen and government bonds.

The benchmark S&P BSE Sensex ended the session down 106.11 points, or 0.26 percent, to 41,459.79, while the broader NSE Nifty index dropped 26.55 points, or 0.22 percent, to 12,174.65.

Private sector lenders came under selling pressure, with IndusInd Bank shares falling 3.6 percent, a day after rating agency Moody's downgraded the private lender's outlook to negative from stable, citing the risk of further asset quality deterioration.

Kotak Bank declined 1.5 percent and ICICI Bank shed 1.7 percent.

On the positive side, Yes Bank surged 6.4 percent after saying it has received non-binding expressions of interest from four investors.

Titan, SBI, Zee Entertainment Enterprises and Dr Reddy's Laboratories rallied 2-4 percent.

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