Mumbai: Metal companies fell out of favor on Wednesday over growth concerns after the International Monetary Fund further revised down India’s GDP growth rate. Besides, investors are already in a fix over the exodus of foreign funds which has already crossed Rs 11,000 crore in the month of July till date.
The Sensex closed 135.09 points or 0.36 percent lower at 37,847.65 from its Monday’s close of 37,982.74 while the broader Nifty closed 59.75 points or 0.53 percent to 11,271.30.
“Investors turned sellers on concerns that the economy is moving through a slowdown phase. IMF lowered GDP growth forecast by 30 bps for 2019 based on weak domestic demand outlook which fuelled a sell-off in a market where sentiment is already hurt due to tax concerns,” said Vinod Nair, Head of Research, Geojit Financial Services.
Nair added that the mixed Q1FY20 results, the outflow of foreign funds and weakening rupee weigh on investor sentiments going ahead. Net profit of V-Guard Industries in Q1 rose 53.6% at Rs 53 crore against Rs 34.5 crore, revenue was up 10% at Rs 706.6 crore against Rs 642.4 crore. EBITDA up 52.1% at Rs 72.1 crore, while margin up at 10.2%, YoY. Net profit of Canara Bank in Q1 rose up 16.9% at Rs 329.1 crore against Rs 281.5 crore, net interest income was down 16.6% at Rs 3,240.1 crore versus Rs 3,882.9 crore, YoY. (IANS)