Domestic stock markets started Wednesday’s session on a muted note, halting a rally that extended to nine straight days, a day after the International Monetary Fund said India is headed for the biggest slump of any major emerging nation. The S&P BSE Sensex index fell 121.52 points – or 0.30 per cent – to 40,501.82 at the weakest level recorded in early deals, following a flat opening. The broader NSE Nifty 50 benchmark dropped to as low as 11,892.45, down 42.05 points – or 0.35 per cent – from its previous close.
At 9:20 am, the Sensex traded 73.43 points – or 0.18 per cent – lower at 40,552.08 while the Nifty was down 24.00 points – or 0.20 per cent – at 11,910.50.
Lowering its forecast for India, the IMF said the country’s economy will contract 10.3 per cent this year because of the coronavirus pandemic – its biggest contraction since independence.
Analysts awaited more large cap earnings for cues with IT major Infosys to report its financial results later in the day.