Indian shares fall after IMF cuts economic growth forecast

FILE PHOTO: People walk past the Bombay Stock Exchange (BSE) building in Mumbai, India, November 4, 2020. REUTERS/Francis Mascarenhas/File photo

BENGALURU (Reuters) – Indian shares fell on Wednesday after the International Monetary Fund cut its 2021 economic growth forecast for the country, while weak global cues and concerns ahead of the U.S. Federal Reserve policy decision also weighed on investor sentiment.

By 0409 GMT, the blue-chip NSE Nifty 50 index was down 0.52% at 15,665.10 and the benchmark S&P BSE Sensex was 0.54% lower at 52,294.74.

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 – citing a lack of access to vaccines and renewed waves of COVID-19 cases.

Shares of InterGlobe Aviation, which runs India’s biggest airline IndiGo, were down 2.4% after COVID-19-related restrictions led the company to post its sixth consecutive quarterly loss on Tuesday.

IndusInd Bank shares rose 2.3% after the lender posted a rise in both net profit and net interest income. However, the overall banking index was down 0.57%.

The pharma index opened down 0.44%, dragged by Torrent Pharmaceuticals.

Investors will watch for results from major companies including Maruti Suzuki India, Nestle India, Pfizer and IDBI Bank later in the day.

Asian shares stayed stuck at seven-month lows, as markets continued to digest a storm in Chinese equity markets, while the dollar rested with traders reluctant to place large bets ahead of the outcome of the Federal Reserve meeting.

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