Sensex Ends 170 Points Higher; IT And Banking Stocks Witness Buying

Indian share markets traded on a volatile note throughout the day and ended higher. Benchmark Indices were highly volatile swinging between positive and negative territory.

Gains were largely seen in the IT sector and banking sector, while telecom stocks witnessed selling pressure.

At the closing bell, the BSE Sensex stood higher by 170 points (up 0.4%) and the NSE Nifty closed higher by 30 points (up 0.3%). The BSE Mid Cap index ended the day up by 0.1%, while the BSE Small Cap index ended down by 0.1%.

Asian stock markets finished on a mixed note as of the most recent closing prices. The Hang Seng was down 0.9% and the Nikkei was down 0.8%. The Shanghai Composite stood higher by 0.2%.

The rupee was trading at 71.91 to the US$ at the time of writing.

In news from the macroeconomic space, Moody's Investors Service cut India's economic growth forecast to 5.6% for 2019, saying government measures do not address the widespread weakness in consumption demand.

It said that, "we have revised down our growth forecast for India. We now forecast slower real GDP growth of 5.6% in 2019, from 7.4% in 2018. India's economic slowdown is lasting longer than previously expected."

Note that last week, Moody's had downgraded India's outlook to negative from stable.

Last month on October 10, Moody's slashed India's economic growth forecast for 2019-20 fiscal to 5.8% from an earlier estimate of 6.2%. It had attributed the deceleration to an investment-led slowdown that has broadened into consumption, driven by financial stress among rural households and weak job creation.

In its Global Macro Outlook 2020-21, Moody's said economic activity in India will pick up in 2020 and 2021 to 6.6% and 6.7%, respectively, but the pace to remain lower than in the recent past.

Moody's said the Reserve Bank of India (RBI) has aggressively cut rates this year, and more rate cuts are likely.

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Disclaimer: Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research ...

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