Market gets a growth scare, Sensex loses 285 points

Mumbai: In a pullback of sorts, the benchmark Sensex fell from a two-week high and in the process closed over 284 points lower Friday after the government slashed the economic growth forecast for 2015-16 to 7-7.5 percent.

With this, the index's 4-day winning momentum may have come to a halt, but for the week, it notched up its biggest weekly gain in more than two months.

The government today lowered its economic growth forecast for 2015-16 to 7-7.5 percent from the earlier 8.1-8.5 percent, but said budget deficit target will be met as higher tax revenues offset a shortfall in PSU stake sale.

Also Watch:

The barometer opened lower, stayed in the negative zone throughout and finally ended down by 284.56 points, or 1.10 percent, at 25,519.22 following a bout of profit-booking.

The index had risen about 760 points in the past four sessions.

The 50-share NSE Nifty cracked below the 7,800-mark by sliding 82.40 points, or 1.05 percent, at 7,761.95 after shuttling between 7,753.35 and 7,836.15.

However, for the week, both indices -- BSE and NSE -- gained 1.89 per and 1.99cent, their biggest since October 9.

The commodity rout, including that of oil, only added to the anxiety level, which saw most Asian markets turning weak.

With shares linked to commodities again taking a hammering and a lower opening in Europe, sentiment remained bearish.

In the previous three sessions, the markets rose largely in tandem with a firming trend overseas after the US Fed, as expected, lifted rates by 0.25 per cent -- a hint that the economy is on mend.

Of the 30-share Sensex pack, 28 lost and 2 advanced. Stocks of software exporters bore the brunt after the US Congress imposed a special outsourcing fee of up to USD 4,500 on H-1B and L-1 visas to fund a 9/11 healthcare Act and biometric tracking system.

In the IT segment, Infosys, TCS and Wipro declined by up to 1.90 per cent. Others that weighed include Vedanta Ltd, Lupin, SBI, Hindalco, RIL and Sun Pharma.

The BSE Metal lost 0.89 percent, banking 0.88 percent, healthcare 0.70 percent and auto 0.69 percent.

However, it was a mixed scene in broader markets, with the mid-cap index climbing 0.08 percent and the small-cap one shedding 0.24 percent.

Foreign portfolio investors (FPIs) net bought shares worth Rs 638.01 crore yesterday, provisional data showed.

Europe was trading weak on lower crude prices, which kept up pressure on shares of energy companies.