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Sensex, Nifty end 0.30% lower over IMF's growth revision
Sensex, Nifty end 0.30% lower over IMF's growth revision

Mumbai, Jan 22 (TIWN / IANS) The Sensex and Nifty ended lower on Tuesday in line with global markets over concerns about the world economy as the International Monetary Fund (IMF)revised down its estimates of global GDP growth over the next two years.

This is the second such revision in three months.

Metal and basic material stocks declined over 1 per cent over downbeat global economic sentiments.

Global shares fell after the IMF slashed its world economic forecast on Monday, warning that the expansion seen in recent years is losing momentum. Domestic investors also booked profits after a five-session winning spree, said Abhijeet Dey, Senior Fund Manager-Equities, BNP Paribas Mutual Fund. 

"However, the IMF also said that India's economy is poised to pick up this year."

Dey also added that the IMF now projects a 3.5 per cent growth rate worldwide for 2019 and 3.6 per cent for 2020. These are 0.2 and 0.1 percentage points below its last forecasts in October 2019, making it the second downturn revision in three months.

The BSE Sensex closed lower by 134.32 points, or 0.37 per cent at 36,444.64, after touching a high of 36,650.47 and a low of 36,282.93.

The benchmark index opened higher on Tuesday, at 36,649.92 points, from its previous close of 36,578.96.

The broader Nifty50 ended lower by 39.10 points or 0.36 per cent at 10,922.75.

"Technically, with the Nifty correcting after the breakout seen yesterday, the index could continue to remain range bound in the coming sessions. Immediate resistance is now at 10,955-10,985 band, while crucial supports to watch for any weakness are now at 10,864," said Deepak Jasani of HDFC Securities.

Stock-wise, Sun Pharma continued to gain on Tuesday. It ended with gains close to 5 per cent after its clarifications in a regulatory filing earlier in the day. 

Sun Pharma was followed by Kotak Mahindra Bank which reported a healthy third quarter earning on Monday.

Hero MotoCorp, Bajaj Finance and Bajaj-Auto surged up to 2 per cent.

In contrast, Vedanta, Tata Steel, Mahindra and Mahindra, HCL Tech and Bharti Airtel lost in the range of 2 to 3.50 per cent.

The Indian rupee depreciated 16 paise against the US dollar, to 71.44 from its previous close of 71.28.

In terms of institutional investment, both foreign and domestic were sellers on Tuesday. FIIs sold stocks worth Rs 78.53 crore and DIIs off loaded stocks worth Rs 84.15.


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