Volatile trade at bourses as IMF downgrade on growth projections dents investor confidence

Source :ANI
Author :ANI
Last Updated: Thu, Jun 25th, 2020, 16:34:59hrs
sensex

Mumbai: Equity benchmark indices edged marginally lower on Thursday due to weak global cues after the International Monetary Fund forecast the global output to shrink by 4.9 per cent this year.

A surge in coronavirus cases worldwide also spooked investor confidence. The IMF predicted the Indian economy to contract by 4.5 per cent following a longer COVID-19 lockdown period and slower recovery than anticipated in April.

The BSE S&P Sensex closed 27 points or 0.08 per cent lower at 34,842 while the Nifty 50 slipped by 16 points or 0.16 per cent at 10,289. Sectoral indices at the National Stock Exchange were mixed with Nifty FMCG up by 2.1 per cent but IT lower by 1.1 per cent.

Among stocks, Indian Overseas Bank surged 10 per cent and hit an upper circuit after the public sector lender reported a net profit of Rs 144 crore in Q4 FY20 as compared to a net loss of Rs 1,985 crore during the same period of the previous year.

The others which gained were Hero MotoCorp, Kotak Mahindra Bank, Bajaj Finance and Hindustan Lever.

However, Asian Paints fell by 3 per cent at Rs 1,692.55 per share while Hindalco dipped by 2.3 per cent to close at Rs 146.55. The other prominent losers were IndianOil Corporation, HCL Technologies, Infosys, Adani Ports and Eicher Motors.

Meanwhile, Asia's stock markets slipped as surging US coronavirus cases, global trade tensions and an IMF downgrade to economic projections knocked confidence in a recovery.

The IMF said it now expects a deeper global recession with output to shrink by 4.9 per cent this year, much sharper than the 3 per cent contraction predicted in April.

Japan's Nikkei slumped by 1.22 per cent while South Korea's Kospi tumbled by 2.27 per cent. Markets in Hong Kong and mainland China were closed for public holidays.