Sensex falls over 100 pts after IMF cuts India's growth outlook
Mumbai: Domestic equity benchmark BSE Sensex dropped over 100 points in early trade on Wednesday as investor sentiment dampened further after IMF cut India's growth outlook.
Massive foreign fund outflow too hit market mood here, traders said.
After swinging nearly 250 points in the highly volatile opening session, the 30-share index was trading 104.13 points or 0.27 percent lower at 37,878.61 at 0930 hours; and the broader Nifty also fell 38.30 points or 0.34 percent to 11,292.75.
In the previous session, the 30-share index ended 48.39 points, or 0.13 percent, lower at 37,982.74. The Nifty too slipped 15.15 points, or 0.13 percent, to close at 11,331.05.
In early trade, shares of Vedanta, IndusInd Bank, M&M, Maruti, Bajaj Auto, Bharti Airtel, ICICI Bank, Bajaj Finance, Tata Steel and RIL were among the top losers in the Sensex pack, falling up to 1.99 percent.
On the other hand, HDFC Bank, Yes Bank, PowerGrid, TechM, HUL, SBI, and HDFC Bank rose up to 1.69 percent.
According to experts, the IMF's downward revision of India's economic outlook hit domestic investor sentiment.
The IMF on Tuesday projected a slower growth rate for India in 2019 and 2020, a downward revision of 0.3 percent for both the years, saying its GDP will now grow respectively at the rate of 7 and 7.2 percent reflecting a weaker-than-expected outlook for domestic demand.
"India's economy is set to grow at 7.0 percent in 2019, picking up to 7.2 percent in 2020. The downward revision of 0.3 percentage point for both years reflects a weaker-than-expected outlook for domestic demand," the International Monetary Fund (IMF) said in its World Economic Update.
Heavy foreign fund outflow and weak corporate earnings are also pushing the market lower, they said.
On a net basis, foreign institutional investors sold equities worth Rs 2,607.97 crore, while domestic institutional investors purchased shares to the tune of Rs 2,625.10 crore, provisional data available with stock exchanges showed on Tuesday.
Elsewhere in Asia, Shanghai Composite Index, Hang Seng, Nikkei, and Kospi were trading in the green in their respective early sessions.
Equities on Wall Street too ended on a positive note on Monday.
Meanwhile, the Indian rupee depreciated 8 paise (intra-day) to 69.03 against the US dollar.
The global oil benchmark Brent crude futures were trading marginally higher at 63.98 per barrel.