Mumbai, Oct 7 : Investors continue to fret over the RBI’s sharp downward revision in its GDP growth forecast last week. Sensex closed with 141 points loss after a choppy day’s trade on Monday.
The Reserve Bank of India (RBI) on Friday sharply cut its GDP growth forecast for FY20 to 6.1 per cent from 6.9 per cent earlier.
“Market traded range-bound as investors are expecting the downward revision in GDP estimate to mirror in second-quarter earnings as well, ” said Vinod Nair, Head of Research at Geojit Financial Services.
The benchmark Sensex closed 141.33 points lower at 37,531.98 and the broader Nifty fell by 48.35 points to 11,126.40.
The core auto, banks and infra sectors are already in subdued condition due to weak demand while stock-specific buying was seen in few blue chips in the light of good monsoon and advantages of tax cut, Nair added.
Pharma companies were the biggest losers on the Nifty. The Nifty pharma index slid over 3 per cent. Aurobindo Pharma fell 20 per cent on the BSE over US drug regulator US FDA’s adverse observation.
Ashok Leyland closed 5.51 per cent lower at Rs 64.35 a piece after announcing production halt for up to 15 days in its various factories in October.
IT stocks also declined as investors grew cautious ahead of the start of second-quarter earnings.