Indian stock markets were today hit by weak global sentiment and IMF's downgrade of GDP growth
Indian stock markets were under pressure for third day in a row amid weak global cues and GDP growth downgrade by IMF. Investors were also cautious ahead of Fed rate meet and tomorrow's weekly derivatives expiry. The Sensex fell over 770 points at day's low today when it hit 51,802, after a 0.5% slide on Tuesday. The broader NSE Nifty 50 index was down nearly 1% to below 15,600.
Here are key updates from Indian markets:
Asian shares were down near at seven-month lows amid storm in Chinese equity markets, after Beijing announced enforcement measures on technology companies.
"There is a mild risk-off in equity markets globally as reflected in the rising dollar. The sell-off in Chinese tech stocks on Beijing's regulatory crackdown has triggered concerns about whether this sell-off will spread to other segments. China is too big now. It can cause flutters in global markets," says VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
The International Monetary Fund on Tuesday forecast India's economy to grow 9.5% in 2021 - a cut of three percentage points from its earlier forecast.
Dr Reddy's shares extended Tuesday's plunge when it fell nearly 3% today. The Nifty pharma index was down about 1% with sentiment turning weak after Dr Reddy's earnings performance.
L&T, Kotak Bank, M&M,. HDFC Bank and Axis Bank were among other major losers in the Sensex pack.
Shares of InterGlobe Aviation, which runs India's biggest airline IndiGo, were down 3?ter the airline posted its sixth consecutive quarterly loss on Tuesday.
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Ravi Singhal, Vice Chairman at GCL Securities said, "This crash in markets can be attributed to the combination of two reasons US Fed meeting today and weak global cues. US Fed meeting is going to happen today and Indian traders don't want to remain in limbo as tomorrow will be weekly expiry at Indian markets. So, traders are squaring off their position one day before the weekly expiry."
The US Fed is widely expected to hold interest rates near zero at the end of the two-day policy meeting today. But any comments on on the mechanics of tapering bond buying will be keenly watched.