Sensex sheds 47 pts as Moody’s lowers growth forecast
Mumbai: Falling for the second straight day, the benchmark BSE Sensex today slipped 47 points to 27,831.54 mainly on heavy selling in blue-chip stocks like HDFC, Lupin and Sun Pharma after Moody’s slashed India’s growth forecast.
Moreover, a sharp correction in Chinese equities also hit sentiment. The BSE metal index plunged close to 2 per cent on fears that China’s economy may be losing momentum.
Warning that slow reforms pace could dent growth, Moody’s Investors Service today cut India’s growth forecast for this fiscal to around 7 per cent from 7.5 per cent projected earlier, citing below-normal rainfall.
Besides, worries over deficient rains which has widened to 10 per cent and is projected to rise to 12 per cent by the end of monsoon season next month, weighed too.
Globally, Asian shares were largely in red with Shanghai index slumping by 6.15 per cent, its biggest fall in 3 weeks.
European shares were also lower in their early trade.
Resuming higher, the Sensex reclaimed the 28,000-mark in early trade and touched the session’s high of 28,040.73 on the back of sustained capital inflows.
However, the index failed to hold onto gains towards the middle of session and slumped to a low of 27,747.40 before ending at 27,831.54, a fall of 46.73 points or 0.17 per cent.
The 50-share NSE Nifty also dropped by 10.75 points or 0.13 per cent to close the day at 8,466.55.
Out of 30-share Sensex pack, 22 closed in the red.
Among Sensex constituents, GAIL suffered the most by plunging 4.43 per cent, followed by Coal India 4.20 per cent.
Cipla, Vedanta, Lupin, Sun Pharma, Hindalco, Tata Motors, ONGC, Bharti Airtel, HDFC, Wipro, ICICI Bank, ITC, RIL, NTPC, Hero MotoCorp and HDFC Bank were also among losers.
However, shares of Tata Steel, Maruti Suzuki, Infosys. TCS, SBI, L&T, M&M and Dr Reddy’s ended in the positive zone.
Sectorwise, the BSE metal index suffered the most by falling 1.92 per cent, followed by healthcare by 0.57 per cent, PSU by 0.47 per cent and realty 0.32 per cent, banking 0.20 per cent and power 0.17 per cent.
In broader markets, small-cap and mid-cap indices ended up to 0.85 per cent higher as investors widened positions.
Foreign Portfolio Investors bought shares worth Rs 142.34 crore yesterday as per provisional data.