Market Wrap: Sensex closes 330 points lower, Nifty holds 11,900 : Bulletin: Business Today
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Market Wrap: Sensex closes 330 points lower, Nifty holds 11,900

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BusinessToday.In | November 8, 2019

Benchmark indices Sensex and Nifty fell 0.80% by the closing bell, backed by heavy selling pressure in pharma, FMCG, IT and metal stocks. While Sensex closed 330 points lower at 40,323 level, Nifty ended at 11,908, declining 103 points.

While Sun Pharma, Vedanta, HUL and ONGC were the major losers by the closing hour, YES Bank, IndusInd Bank and ICICI Bank were among the top Sensex gainers

With the opening bell, equity market slipped in the red and turned volatile, after Moody's Investors Service lowered India's credit rating outlook citing concerns over the country's economic growth.

The outlook partly reflects government and policy ineffectiveness in addressing economic weakness, which led to an increase in debt burden from already high levels.

The rating move coupled with MF inflows falling to a four-month low not only caused profit-booking by investors but also turned most sectoral indices red, except for realty and banking stocks. Sectorally, over 2% fall was registered in pharma stocks, followed by a 1.5% loss in FMCG, IT, metal and PSU bank scrips.

Following Moody's revision, Nomura lowered India's 2019 GDP growth projections to 4.9% from 5.7% and lowered 2020 GDP growth projections to 6% from 6.9%.

Despite today's bearish session, Sensex made an all-time high for the third consecutive session, rising to 40,749 level, whereas Nifty climbed to the intraday high of 12,034 level.

Underwhelmed by Moody's downgrade news, Indian Rupee opened on a cautious note at 71.27 per dollar. Later, the local unit weakened to a 3 week low and fell 19 paise lower to 71.16 per dollar against the previous closing of 70.97 per US dollar.

While index heavyweights GAIL, Eicher Motors, Mahindra and Mahindra, Allahabad Bank, Bharat Forge, Indraprastha Gas, Berger Paints, Dr Lal PathLabs, MRF posted their Q2 earnings during market hours, other listed companies that are due to release September earning figures post marlet closing are Bank of Baroda, Religare Enterprises, Sical Logistics, IDBI Bank, Inox Wind, Tata Communications, Tata Power, Ashok Leyland, CRISIL, Inox Wind and IDFC among others.
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