Stocks decline as Moody’s slashes India growth forecast
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
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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