The benchmark indices ended in the negative territory on Wednesday, bringing the 10-day rally to a halt, a day after the World Bank said India’s economy is estimated to contract 9.6 per cent in the current financial year. The 30-scrip index had jumped 178.87 points, or 0.37 per cent, to touch 48,616.66 in the first few minutes of trade, and the broader NSE Nifty 50 benchmark added 44.65 points (0.31 per cent) to 14,244.15 – both all-time highs.
The Sensex thereafter slumped 750 points to hit an intra-day low of 47,864 in the late-noon session before closing at 48,174.06, down 263.72 points or 0.54 per cent and the NSE Nifty ended at 14,146.25, down 53.25 points or 0.38 per cent. Reliance Industries, ITC and select information technology stocks led the decline in the markets.
India’s economy is estimated to contract by 9.6 per cent in the fiscal year 2020-21, reflecting a sharp drop in household spending and private investment, and the growth is expected to recover to 5.4 per cent in 2021, the World Bank said on Tuesday.
In its Global Economic Prospects report, the World Bank said that the informal sector, which accounts for four-fifths of employment, has been subject to severe income losses during the COVID-19 pandemic.
Information and FMCG indices were the top sectoral losers, shedding around a per cent each. In the Information technology space, TCS, HCL and Infosys shed around a per cent each. And FMCG heavyweights ITC and Hindustan Unilever lost 2.8 per cent and 1.3 per cent respectively.