MUMBAI: Equity benchmark indices Sensex and Nifty ended marginally lower on Wednesday, dragged by concerns over muted GDP growth projections and mixed global cues. Investor sentiment remained cautious ahead of the earnings season, while foreign fund outflows further weighed on the market.
India’s economic growth rate is estimated to slip to a four-year low of 6.4 per cent in 2024-25, as per government data released on Tuesday. The decline is attributed to a slowdown in the manufacturing and services sectors.
This marks the weakest growth since the Covid-hit year of 2020-21, when the economy contracted by 5.8 per cent. The BSE Sensex shed 50.62 points or 0.06 per cent to settle at 78,148.49, recovering from an intraday low of 77,486.79 – a drop of 712.32 points or 0.91 per cent. The NSE Nifty slipped 18.95 points or 0.08 per cent to end at 23,688.95.
Slowing economic growth projections and caution ahead of Q3 numbers added volatility to the market. However, a recovery from the day’s low was supported by the accumulation of beaten-down blue-chip stocks and expectations of reforms in the upcoming budget.
“Near-term sentiment may remain subdued due to rising US bond yields and concerns about fewer rate cuts by the Federal Reserve,” said Vinod Nair, Head of Research, Geojit Financial Services.
Key movers
From the 30-share Sensex pack, HDFC Bank, ICICI Bank, Adani Ports, UltraTech Cement, Larsen & Toubro, Sun Pharma, NTPC, and State Bank of India were the major laggards.
On the other hand, gains in Tata Consultancy Services, Reliance Industries, ITC, Asian Paints, HCL Tech, and Maruti helped limit losses.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs1491.46 crore on Tuesday, as per exchange data.
Global markets
In global markets, Seoul and Shanghai ended higher, while Tokyo and Hong Kong closed in the red. European markets traded in the green, whereas US markets ended lower on Tuesday.
Brent crude, the global oil benchmark, rose 0.79 per cent to $77.66 per barrel.
India’s GDP growth projections have steadily declined in recent years, from 9.7 per cent in 2021-22 to 7 per cent in 2022-23, and 8.2 per cent in 2023-24. The projected 6.4 per cent growth for 2024-25 underscores mounting economic challenges, with reforms and recovery measures anticipated in the upcoming budget.
