Indian shares fall on dour IMF outlook, virus fears
The IMF predicted Indian economy to contract by 4.5 per cent following a longer lockdown period and slower recovery than anticipated in April.
Indian stocks fell on Thursday after the International Monetary Fund steeply cut its growth outlook for the country and forecast a deeper global recession, with a surge in coronavirus cases also spooking investors.
The IMF predicted Indian economy to contract by 4.5 per cent following a longer lockdown period and slower recovery than anticipated in April. It also expects global output to shrink 4.9 per cent this year, much sharper than the 3 per cent contraction predicted in April.
Domestic coronavirus virus cases surged over 456,000, while some US states reported record increase in new cases on Wednesday and Australia posted its biggest daily rise in infections in two months.
The NSE Nifty 50 index fell 1 per cent to 10,205.60 and the benchmark S&P BSE Sensex was down 0.90 per cent at 34,571.27 as of 0346 GMT.
Asia's stock markets slipped, bonds rose and the US dollar was firm on Thursday.
Meanwhile, Indian rupee opened marginally lower at 75.75 per US dollar, quoting at Dh20.64 on Thursday against previous close of 75.72, amid volatile trade seen in the domestic equity market.
The Indian currency erased its initial gains and ended lower by 8 paise at 75.72 against the US dollar on Wednesday.
- With inputs from Reuters, email@example.com
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