BSE Sensex hits 1-1/2-mth closing low as banks, Cipla shares plunge, NSE Nifty down by 20
their lowest close in one-and-a-half months, led by a decline in banking stocks, after government estimates showed India's FY13 growth could be worse than expected, while drugmaker Cipla Ltd dropped after its October-December net profit missed estimates.
India's slowest growth in a decade could be worse than anticipated preliminary data released on Thursday showed. The economy is set to grow 5.0 percent in the fiscal year ending next month, compared with central bank's forecast of 5.5 percent. Caution also prevailed as investors awaited the European Central Bank's policy meeting later in the day and President Mario Draghi's views on the region's growth outlook.
Analysts say consolidation is expected to continue ahead of the 2013/14 federal budget to be announced later this month, which is seen as a key test of the government's commitments to shore up its finances.
"The market perhaps wants to consolidate before any next move, ahead of the Budget, which can be a bit populist," said Vijay Kedia, director at private wealth management firm Kedia Securities.
The key things to watch for now are how many more reforms come and how soon they get implemented, to stoke growth and avoid rating cuts, added Kedia.
The benchmark BSE index fell 0.3 percent, or 59.40 points, to end at 19,580.32, falling for a sixth day to mark its biggest losing streak
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