Sensex plunges 135 points as IMF downgrades India’s economic outlook

Sensex plunges 135 points as IMF downgrades India’s economic outlook

Agency News

Mumbai, Jul 24 : The BSE Sensex fell for the fifth straight session on Wednesday by 135.09 points to end negative at 37,847.65 on heavy sell-off across the board after the International Monetary Fund (IMF) lowered India's economic outlook as well as outflow of foreign funds and weak corporate results.

The IMF on Tuesday projected a slower growth rate for India in 2019 and 2020, a downward revision of 0.3 per cent for both the years, saying its GDP will now grow respectively at the rate of 7 and 7.2 per cent, reflecting a weaker-than-expected outlook for domestic demand. Heavy foreign fund outflow and weak corporate earnings also weighed down on the market sentiment coupled with firmness of crude oil prices that raised concerns of higher inflation and fiscal slippage, brokers said.

The Nifty of the National Stock Exchange (NSE) too declined by 59.75 points to 11,271.30. The Sensex oscillated in the range of 38,102.84 and 37,708.41 points, respectively, during the day. The Nifty hit day's high and low at 11,359.75and 11,229.80 points, respectively.

The broader markets underperformed the Sensex, as the BSE Mid-Cap index and Small-Cap shed by1.48 per cent and 1.23 pc, respectively. The market breadth was weak on BSE, as 836 shares advanced against 1,620 declined and 153 were unchanged.
Overseas, most European stocks were trading lower while Asian shares ended higher on Wednesday as the prospect of fresh Sino-US trade talks drew a guarded welcome. The Euro hit lows on a range of counterparts amid speculation the European Central Bank was near to easing policy.

Japan's Nikkei added 0.3 per cent, while Australian stocks were up 0.7 per cent after hitting 12-year highs. MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.1 per cent and Chinese blue chips climbed 0.8 per cent.

Nasdaq futures fell 0.3 per cent in Asian trade, while E-Mini futures for both the S&P 500 and Euro Stoxx 50 were all but flat. The Dow had ended Tuesday up 0.65 per cent, while the S&P-500 gained 0.68 per cent and the Nasdaq 0.58 per cent. (UNI)