Paring its early gains, the BSE benchmark Sensex on Wednesday closed lower by 34.13 points at 17,065.15 on selling mainly in auto and oil stocks by investors amid weak economic forecast by IMF.
The gauge touched the day’s high of 17,191.12, but failed to sustain these levels on lower opening in Europe.
Selling pressure gathered momentum as the IMF cut its estimate for India’s 2012 growth to 7.5 per cent.
The Sensex had declined 17 per cent this year on concern over higher interest costs and Europe’s sovereign-debt crisis.
IMF cut its forecast for the country’s growth in 2012 to 7.5 per cent.
In similar fashion, the broad-based National Stock Exchange index Nifty declined by 6.95 points to 5,133.25, after rising to 5,168.40 and a low of 5,109.85.
The downtrend was led by auto and refinery stocks on fears a constant hike in interest rate and steep hike in fuel prices might hamper revenue of these companies.
The refinery major Reliance Industries fell by 1.57 per cent to Rs 838.10 and auto major Maruti Suzuki India by 2.65 per cent to Rs 1,124.10.
The oil and gas sector index suffered the most by 1.16 per cent to 8,741.86 followed by auto index by 0.91 per cent to 8,899.32. The metal sector lost 0.26 per cent to 12,317.65.
The IT sector index fell by 0.26 per cent to 5,202.77 as second largest on the benchmark Infosys lost 0.18 per cent to Rs 2,433.40.
