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Markets' 5-day rising streak comes to a halt over economic growth concerns

The benchmark Sensex dropped 0.4 per cent or 134 points, to 36,445, posting its first decline in six days

Bloomberg/BS Reporter  |  Mumbai 

(Photo: Kamlesh Pednekar)
(Photo: Kamlesh Pednekar)

declined, halting a five-day rally, as shares from Tokyo to Sydney slipped on concerns over global economic growth after the trimmed its global growth forecast to the weakest in three years.

The benchmark dropped 0.4 per cent or 134 points, to 36,445, posting its first decline in six days. The also fell 0.4 per cent or 39 points to 10,923.

“The market has mirrored the downswing in global equities, which was impacted on concerns over global economic growth. Investors are worried over the governments’ ability to meet the fiscal target of 3.3 per cent of GDP in FY19, further dragging the sentiment. On the other hand, volatility may continue in the near term due to risk of populist measures in the interim budget and lower tax collection,” said Vinod Nair, head of research at Geojit Financial Services.

Regional retreated as optimism on the US-China talks faded. Investors in India are focused on policy initiatives and political rhetoric ahead of the expected in April, even as companies continue to report earnings for the third quarter of FY2019.

“Elections will make the volatile from March, when dates will be announced," said Avinash Gorakshakar, head of research at Joindre Capital Services.

Of the 19 sector indexes complied by the BSE, 16 ended with losses. Twenty-one of the 31 members and 30 of the 50 companies declined. Net incomes of seven of the nine companies that have reported earnings so far have either topped or matched analyst estimates, according to data compiled by Bloomberg.

Both domestic as well as foreign investors were net-sellers to the tune of Rs 84 crore and Rs 79 crore, respectively, on Tuesday, provisional data showed.

First Published: Tue, January 22 2019. 22:27 IST