Home / Markets / Stocks decline as Moody’s slashes India growth forecast

MUMBAI : Benchmark indices Nifty and Sensex declined by over a percent each. This came after rating agency Moody’s slashed India’s growth forecast, a day after the National Statistical Office said gross domestic product (GDP) grew by 13.5% in Q1, significantly below the Reserve Bank of India estimate of 16.2%, amid weak global cues.

The downgrade led to foreign institutional investors selling a provisional 2,290.31 crore on 1 September and raising net cumulative bearish bets on the Nifty and Bank Nifty futures by 47,000 contracts. They had net purchased shares worth 5,6521.10 crore last month. However, provisional domestic institutional investor buying of 951 crore enabled the indices to pare losses.

The Nifty closed down 216.50 points or 1.22% at 17,542.8, off the day’s low by 74 points. The Sensex ended 770.48 points or 1.29% lower at 58,766.59, off the day’s low by 0.4%. Indices have fluctuated 611 points between high and low over the past week .

As many as 38 of the 50 stocks on the Nifty declined, led by heavyweights such as Hindalco, Reliance, and ONGC, which dell between 2.8% and 4%. Bajaj Finserv, Asain Paints, and Bharti Airtel bucked the trend gaining 1-3%.

The intraweek price swings have caused fear gauge India Vix to trade between a low of 15.82 and a high of 20.99 this Thursday.

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