IMF’s growth projections haunt stocks, Nifty ends below 8,400 | business-news | Hindustan Times
Today in New Delhi, India
Jun 24, 2017-Saturday
-°C
New Delhi
  • Humidity
    -
  • Wind
    -

IMF’s growth projections haunt stocks, Nifty ends below 8,400

Growth concern cast its shadow on the market as the flagship Sensex slipped marginally to close at 27,236 after IMF sharply lowered India’s GDP estimate, with RIL proving to be a drag too.

business Updated: Jan 17, 2017 17:56 IST
PTI
IMF
In this file photo share brokers are seen reacting to falling stock prices on screens of computers and television.(PTI)

Growth concern cast its shadow on the market as the flagship Sensex slipped marginally to close at 27,236 after IMF sharply lowered India’s GDP estimate, with RIL proving to be a drag too.

The multi-lateral agency had cut India’s growth rate for the current fiscal to 6.6 per cent from its previous estimate of 7.6 per cent due to the “temporary negative consumption shock” of demonetisation, which made investors anxious.

Reliance stock was in a tight spot as spending worries surrounding its telecom venture took some sheen off its quarterly results.

After opening higher, the 30-share BSE barometer ended at 27,235.66, down 52.51 points, or 0.19 per cent. The gauge had climbed 50 points yesterday.

The 50-share Nifty index fell 14.80 points, or 0.18 per cent, to 8,398 after shuttling between 8,440.90 and 8,378.30.

Key index heavyweights in metal, oil and gas, PSU, auto and banking sectors fell up to 1.52 per cent.

Persistent foreign capital outflows and lower opening in Europe dampened sentiment.

RIL yesterday posted a 3.6 per cent rise in its third quarter net profit. After making a weak opening, the stock lost 3.31 per cent to close at Rs 1,041.30.

The ongoing corporate results and the Union budget -- due in February -- are also making participants tread cautiously though the headway over GST offered some relief.

“Market had started off with a positive sentiment supported by consensus over the rollout of GST, but this trend could not be continued as the investors mulled over 100 bps cut in GDP (forecast) by IMF to 6.6% in 2016-17,” said Vinod Nair, Head of Research, Geojit BNP Paribas Financial Services.

Among the major losers, Coal India fell 2.14 per cent, ONGC 1.74 per cent, Adani Ports 1.68 per cent and HDFC 1.02 per cent.

NTPC advanced 3.08 per cent, Asian Paints 2.72 per cent, Axis Bank 1.98 per cent, HUL 1.52 per cent and ITC 1.35 per cent.

Foreign portfolio investors (FPIs) dumped shares worth a net Rs 347.25 crore yesterday, as per provisional data.

US financial markets remained shut yesterday for Martin Luther King Junior Day. In Asia, Japan’s Nikkei fell 1.48 per cent as investors track a Brexit speech by UK Prime Minister Theresa May and Donald Trump’s inauguration as US President.

However, Hong Kong rose 0.54 per cent and Shanghai gained 0.17 per cent.

European indices traded lower in their afternoon trade.