Bourses dip on growth concern

Mumbai: Growth concern cast its shadow on the market as the flagship Sensex slipped marginally to close at 27,236 after IMF sharply lowered India’s GDP estimate, with RIL proving to be a drag too.

The multilateral agency had cut India’s growth rate for the current fiscal to 6.6 per cent from its previous estimate of 7.6 per cent due to the “temporary negative consumption shock” of demonetisation, which made investors anxious.

Reliance stock was in a tight spot as spending worries surrounding its telecom venture took some sheen off its quarterly results. After opening higher, the 30-share Bombay Stock Exchange barometer ended at 27,235.66, down 52.51 points, or 0.19 per cent. The gauge had climbed 50 points on Monday. The 50-share Nifty index fell 14.80 points, or 0.18 per cent, to 8,398 after shuttling between 8,440.90 and 8,378.30.

Key index heavyweights in metal, oil and gas, PSU, auto and banking sectors fell up to 1.52 per cent. Persistent foreign capital outflows and lower opening in Europe dampened sentiment.

RIL on Monday posted a 3.6 per cent rise in its third quarter net profit. After making a weak opening, the stock lost 3.31 per cent to close at Rs 1,041.30.

The ongoing corporate results and the Union budget — due in February — are also making participants tread cautiously though the headway over GST offered some relief.

“Market had started off with a positive sentiment supported by consensus over the rollout of GST, but this trend could not be continued as the investors mulled over 100 bps cut in GDP (forecast) by IMF to 6.6% in 2016-17,” said Vinod Nair, Head of Research, Geojit BNP Paribas Financial Services.

Among the major losers, Coal India fell 2.14 per cent, ONGC 1.74 per cent, Adani Ports 1.68 per cent and HDFC 1.02 per cent.

NTPC advanced 3.08 per cent, Asian Paints 2.72 per cent, Axis Bank 1.98 per cent, HUL 1.52 per cent and ITC 1.35 per cent.

FPIs dumped shares worth a net Rs 347.25 crore yesterday, as per provisional data.