Market Wrap: Sensex, Nifty ends lower for fifth straight session after IMF cuts India growth forecast : Bulletin: Business Today
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Market Wrap: Sensex, Nifty ends lower for fifth straight session after IMF cuts India growth forecast

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July 24, 2019



Extending losses for the fifth consecutive session, equity benchmarks BSE Sensex and NSE Nifty closed lower on Wednesday as investors turned cautious after IMF slashed India's growth outlook amid massive foreign fund outflow. Downbeat earnings also pushed the markets lower, traders said.

"IMF lowered GDP growth forecast by 30bps for 2019 based on weak domestic demand outlook which fuelled a sell-off in a market where sentiment is already hurt due to tax concerns," commented Vinod Nair, Head of Research, Geojit Financial Services on his daily market rundown.

The BSE Sensex closed at 37,847 by declining 135 points and NSE Nifty ended 59 points lower to 11,227.

"Nifty broke its recent bottom of 11,460 and has been under pressure since then. Midcap indices have been under pressure and currently trade near critical support levels. Any upside momentum would indicate the possibility of a strong reversal in the space," stated Sahaj Agarwal, Head of Derivatives, Kotak Securities, on Nifty weekly update.

In major stock news, SBI Life Insurance touched a fresh 52-week high of Rs 808.10 after posting strong quarterly figures.

Similarly, shares of Torrent Pharma rose over 10 %, HUL rose 2% over good quarterly figures. On the other hand,  L&T shares fell 2% after the results update.

Other than earnings impact, Persistent System stock fell over 5% after Deloitte refused re-appointment as auditor of the company, while Vadilal Enterprises shares fell 5% intraday after its independent director Jignesh Shah resigned over questions on integrity and independence.

On the currency front, the Indian rupee opened weak at the interbank forex market on Wednesday and declined by 16 paise to 69.10 against the US dollar amid sustained foreign fund outflows and rising crude oil prices. It later traded lower at 69.005 against the dollar.

On the global front, Broad sentiment was boosted by Bloomberg report that suggested US-China trade talks will begin next week. Elsewhere in Asia, Shanghai Composite Index, Hang Seng, Nikkei and Kospi were trading in the green.

S&P and Nasdaq on Wall Street were lifted by upbeat quarterly reports, while indices in European markets like FTSE, CAC and DAX Index stayed flat as investors awaited manufacturing and services data.

Meanwhile, Brent crude futures, the global oil benchmark, rose to USD 63.73 per barrel, extending gains over yesterday as rising tensions with Iran fueled concerns about supply disruptions and U.S. inventory data showed a much bigger than expected drop in crude stockpiles.
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