Indian equities fell sharply on Wednesday after the International Monetary Fund (IMF) revised down the global growth forecast fuelling fears of a global slowdown. Investors were also cautious ahead of the polls which is set to begin from Thursday.
Caution was also seen among investors ahead of the start ofearning season and for fresh trade tensions between US and EU.
The BSE Sensex closed 345.20 points or 0.89 per cent lowerat 38,594.02. The broader Nifty slipped by 84 points or 0.72 per cent to finishat 11,587.95.
“Market slid ahead of the start of the first phase ofpolling and renewed concern on global economic growth after IMF downgraded thegrowth forecast to 3.3 per cent for 2019. Rupee remains strong and FIIs inflowwas steady which will cap the downside,” said. Vinod Nair, Head ofResearch, Geojit Financial Services.
The election-led consolidation may be short lived and thekey trigger will be the earnings growth which is expected to start to revivefrom the fourth quarter onwards, he added.
According to Sameet Chavan, Chief Analyst-Technical andDerivatives, Angel Broking, the correction was “led by heavyweights likeHDFC Twins, Reliance and marquee IT names”.
Hindalco Industries was among the top losers on the NSE asthe company temporarily shut the operations of its alumina plant in Jharkhandafter a spillage incident injured four people.
Asian Paints, the largest paint maker lost nearly 2.5 percent after a downgrade by CLSA over rising crude oil prices. Bharti Airtel lostthe most on Wednesday on the NSE.
Wipro gained more than 2 per cent after market regulator SEBI approved a buyback worth Rs 12,000 crore, the company’s largest till date. Tata Motors ended as the top gainer.