Sensex closes down 53 points, Nifty lower by 15 points as energy, metal stocks fall

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Mumbai: Growth concern cast its shadow on the market as the flagship Sensex slipped marginally to close at 27,236 after International Monetary Fund (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% from its previous estimate of 7.6% 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%. The gauge had climbed 50 points on Monday. The 50-share Nifty index fell 14.80 points, or 0.18%, 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%.

Persistent foreign capital outflows and lower opening in Europe dampened sentiment. RIL posted a 3.6% rise in its third quarter net profit. After making a weak opening, the stock lost 3.31% to close at Rs1,041.30.

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%, ONGC 1.74%, Adani Ports 1.68% and HDFC 1.02%. NTPC advanced 3.08%, Asian Paints 2.72%, Axis Bank 1.98%, HUL 1.52%and ITC 1.35%.