Mumbai Benchmark indices Nifty and Sensex fell more than one per cent each. This comes after rating agency Moody’s lowered India’s growth forecast, a day after the Office for National Statistics said gross domestic product (GDP) grew by 13.5% in Q1, amid weak global cues, Reserve Bank of India said. Much lower than the bank’s estimate of 16.2%.
Downgrade prompts foreign institutional investors to make a provisional sell 2,290.31 crore on September 1 and net cumulative bearish bets by 47,000 contracts on Nifty and Bank Nifty futures. He had net purchased shares worth 5,6521.10 crore last month. However, the provisional domestic institutional investor purchase 951 crore enabled the indices to reduce the deficit.
The Nifty ended 216.50 points, or 1.22%, lower at 17,542.8, down 74 points from the day’s low. The Sensex ended the day down 0.4% at 58,766.59, down 770.48 points or 1.29%. The index has fluctuated 611 points between high and low in the past one week.
Led by giants like Hindalco, Reliance and ONGC, 38 of the 50 stocks on the Nifty fell between 2.8% and 4%. Bajaj Finserv, Asain Paints and Bharti Airtel bucked the trend with gains of 1-3%.
Intraweek price swings have prompted fear gauge India Wicks to trade between a low of 15.82 and a high of 20.99 this Thursday.
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