The Indian stock markets bore the brunt of the International Monetary Fund's (IMF) downgrading of its growth estimates for India in the financial year 2019-2020. On Wednesday, 24th July, both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) cascaded sharply.
The BSE lost around 0.36 per cent and ended the day in the red at around 37,847.65. The NSE slumped by around 0.53 per cent and closed the day at about 11,271.3. Not only was the fifth consecutive session in which the indices had encountered the bear but it was also the worst loss for the Indian stock indices since May 2019.
Indiabulls Housing Finance Ltd. and Adani Ports and Special Economic Zone Ltd. were two of the companies whose share valuations dipped. The former lost around 4.5 per cent of its shares' value while the latter fell by about 4.7 per cent.
Meanwhile, riding on the announcement that Indigo Airlines' owners had resolved their ongoing dispute, the shares of the aviation company perked up and ended the day, with a gain of about 4.7 per cent. On Tuesday, 23rd July, the IMF lowered its growth predictions for the sub-continent giant by around 0.3 per cent, from 7.3 per cent to 7 per cent for 2019-2020.
The reason for the truncation of its initial assessment was the lowered "domestic demand" which in turn would impair the revival of the battered economy. The IMF's dreary outlook further heightened the worry about the sustenance of the precarious Indian economy.