Rate-sensitive scrips end in red on growth worries

Written by fe Bureau | Mumbai | Updated: Jan 30 2013, 07:57am hrs
Reversing previous day's gains, banking and interest rate- sensitive stocks ended weak on Tuesday after RBI revised down India's FY13 economic growth forecast.

The central bank on Tuesday cut India's FY13 GDP growth forecast to 5.5% from 5.8% estimated earlier and highlighted the need for additional reforms on the fiscal front to stop the fall in growth.

Realty and infra stocks were the biggest losers. BSE Realty index ended down 2.07% or 45.99 points to end at 2177.77 led by Unitech, which plunged nearly 6%. Indiabulls Real Estate lost 4.7%, whereas HDIL lost almost 4% and DLF ended down 1.3%.

Shares in IVRCL declined 8.9% to R32.80 on reports the company was facing funding storage and was planning to sell some assets. The scrip has plummeted over 31% in the last two months.

After rising 1% intraday, the CNX Bank Nifty ended 0.46% or 58.55 points lower to 12,722.80.

Bank of Baroda was the biggest loser among the frontline stocks. Hindalco Industries, HDFC Bank, Bajaj Auto and Reliance Infrastructure also featured among the biggest losers on Tuesday, all ending down over 2%.

Sensex down 0.56%: Sensex ended down 0.56% or 112.45 points to 19,990.90, and Nifty ended down 0.37% or 22.40 points to 6,052.40. Axis Bank was the biggest gainer on Tuesday. The scrip gained over 4% to close at R1,437.35 on the NSE after the company's institutional placement programme on Monday received good demand and the company was able to raise over Rs 5,500 crore.