Lower growth forecast drags markets
After gaining for four straight sessions, the markets fell over 1 per cent over profit booking as government lowered growth forecast to 7-7.5 per cent.
Mumbai: After gaining for four straight sessions, the markets fell over 1 per cent over profit booking as government lowered growth forecast to 7-7.5 per cent.
Analysts opined that markets will look for management's feel over reforms before taking the course. Investors took serious note of Chief Economic Advisor's sentiments besides Fed rate hike and anticipated delay in the passage of GST bill.
Sensex was down 285 points to close at 25,519 and Nifty fell 82 points to end at 7,762. Meanwhile, the broader markets outperformed benchmarks with midcap closed flat with a positive note. On the sectoral front, heavy selling is seen in IT, TEcK and metal counters, while buying support observed in consumer durables counters.
With the US congress doubled visa fee impacted IT companies as it will cost the IT majors in the order $ 400 million annually. IT majors Infosys, TCS, Tech Mahindra lost up to 2 per cent.
Banks also lost sheen as RBI released final guidelines on interest rate computing. Among the PSU banks: UBI, IDBI Bank, BoB, Allahabad Bank, Dena Bank, Indian Bank, Andhra Bank SBI etc have lost up to 2 per cent, each. On the other hand private banks also lost between 0.4 per cent and 1.5 per cent.
Also shares of Oil and Gas companies, RIL, Cairn India and ONGC dropped up to 1.6 per cent, while auto majors Bajaj Auto declined 2 per cent.
The gainers: NTPC, up 0.63 per cent at Rs 136.25, and Coal India, up 0.13 per cent at Rs 316.55.
The losers: Vedanta, down 3.21 per cent at Rs 84.35; Lupin, down 2.10 per cent at Rs 1,785.60; Bajaj Auto, down 1.95 per cent at Rs 2,475.10; and Infosys, down 1.90 per cent at Rs 1,085.95.