Sensex falls 49 pts on growth, monetary policy concerns
Mumbai: In choppy trade, the Sensex on Friday fell 49 points to close at 19,732.76 as Prime Minister's key advisor slashed the GDP growth forecast for this fiscal and said the current stance of monetary policy should be continued until stability in the rupee is achieved.
Edgy global stocks ahead of US retail sales and consumer confidence data that may influence stimulus tapering also affected domestic markets. After dropping nearly 216 points in the previous session, the Sensex lost another 49.12 points, or 0.25 percent.
The Prime Minister's Economic Advisory Council (PMEAC) Chairman C Rangarajan said GDP will grow at 5.3 percent this fiscal compared with April projection of 6.4 percent growth.
The bluechip index remained volatile intra-day and rose to a high of 19,899.37 and a low of 19,675.68. Yesterday, government data showed inflation eased slightly to 9.52 percent in August and factory output grew 2.6 percent in July.
Rupee was also trading weak at 63.7 levels versus dollar.
The 50-scrip NSE Nifty edged down by 0.10 points to 5,850.60, after moving between 5,884.30 and 5,822.90. Also SX40 index, the flagship index of MCX-SX, ended at 11,706.18, down 28.16 points or 0.24 percent.
Sectorally, the consumer durable index suffered the most by losing 1.54 percent to 5,749.11 followed by IT index by 1.43 per cent to 7,802.40.
On a weekly basis, the Sensex managed to rise for the third successive time as the index gained 462.7 points or 2.40 percent.