Mumbai - The benchmark BSE Sensex fell over 159 points in early trade on Monday on continued capital outflows by foreign funds and selling by retail investors after industrial production growth slowed to five-month low in August amid a weak trend overseas.

The 30-share barometer declined by 159.35 points, or 0.61 percent, to 26,138.03 with realty, metal, auto, capital goods and banking stocks, leading the fall.

The index had plunged 339.90 points in the previous session on Friday.

On similar lines, the National Stock Exchange index Nifty moved down by 52.00 points, or 0.66 percent, to trade at 7,807.95.

Brokers said selling activity gathered momentum on disappointing economic data as the country's industrial production growth slowed to five-month low of 0.4 percent in August.

Besides, a cautious approach by participants ahead of quarterly earnings of bluechip company RIL, to be announced after market hours today and a weak trend in other Asian markets, influenced trading sentiments here.

Stocks of RIL were down 0.72 percent to Rs 953.40.

Among other Asian markets, Hong Kong's Hang Seng index was down by 0.89 percent, while Japan's financial markets are closed today for a public holiday.

The US Dow Jones Industrial Average ended 0.69 percent lower in Friday's trade. (PTI)