The Benchmark Index of Bombay Stock Exchange (BSE) on Wednesday slipped by 400 points, a day after the International Monetary Fund cut its growth forecasts for India.
The BSE Sensex benchmark added 120.1 points to touch 38,102.84 on the upside in morning deals, and then slumped as much as 394.43 points from that level to touch 37,708.41 at the day's weakest level. The National Stock Exchange (NSE) Nifty benchmark slid below the 11,300 mark.
A selloff across sectors - led by automobile, metal, pharma and energy stocks - pulled the markets lower. The IMF said the Indian economy is set to grow 7.0 per cent in 2019 and 7.2 per cent the next year, a downward revision of 0.3 percentage point for both years, citing a weaker-than expected outlook for domestic demand.
The losers were JSW Steel, Vedanta, Adani Ports, Tata Steel, Eicher Motors and BPCL and registered a loss between 3.13 per cent and 5.34 per cent. ICICI Bank, Reliance Industries and Larsen & Toubro were the top drags on the Sensex.