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Sensex tanks 194 pts after Eco Survey projects lower GDP


There were signs of anxiety in the

market as the Sensex today slumped 194 points ahead of the

budget — to be presented on Wednesday — to a one-week low of

27,656 and the Nifty slipped below 8,600 after the Economic

Survey projected a lower growth of 6.5 per cent for 2016-17.

The recently introduced immigration restrictions by US

President Donald trump and the new legislation that aims to

rework the H1-B visa programme dealt a blow to IT stocks,

which saw a big fall.

TCS, Wipro and Infosys dropped by up to 4.47 per cent,

dragging down the BSE IT index by 2.96 per cent, followed by

technology that tanked 2.49 per cent.

The Economic Survey for 2016-17, tabled in Parliament by

Finance Minister Arun Jaitley today, underscored the need for

more reforms. Its GDP growth forecast for this fiscal is

lower than the 7.1 per cent put out by the Central Statistics

Office earlier this month.

The Sensex closed down 193.60 points, or 0.70 per cent,

at 27,655.96, its lowest closing since January 24 when the

figure was 27,375.58. It had lost 33 points in the previous


The broad-based NSE Nifty, which hit a low of 8,552.40

intra-day, managed to cut down losses and ended lower 71.45

points, or 0.83 per cent, at 8,561.30.

The risk-averse behaviour was on display as participants

took cues from global stocks that remained on the backfoot

following Trump’s controversial crackdown on immigration.

“The Economic Survey failed to impress investors who opted

for keeping their commitments at a low ebb and wait for the

the budget,” said Manoj Choraria, a Delhi-based stock broker.

GAIL, Adani Ports, Sun Pharma, Tata Motors, Coal India,

Lupin, Axis Bank and NTPC were among those that weighed.

Sectoral indices such as oil and gas (1.64 per cent), PSU

(1.39 per cent), healthcare (1.38 per cent), infrastructure

(1.31) per cent and metal (1.01 per cent) all turned weak.

Selling activity also extended to the broader markers,

with the BSE midcap falling 1.10 per cent and the smallcap

1.03 per cent.

According to provisional figures, foreign investors bought

shares worth Rs 607.36 crore yesterday.

There were a few that went up cushioning the fall, which

include ITC, PowerGrid, Bajaj Auto, ONGC and HDFC Bank.

In Asia, most markets were closed today for a public

holiday. Japan’s Nikkei ended lower by 1.69 per cent.

European markets, however, were trading higher as major

indices in France, Germany and the UK moved up.

(This article has not been edited by DNA’s editorial team and is auto-generated from an agency feed.)