Sensex declines 59 points on growth concerns

Mumbai: The Bombay Stock Exchange (BSE) benchmark Sensex on Thursday fell by over 59 points after lower economic growth forecast dampened investors' sentiment amid a weak global trend. The Sensex declined to close 59.40 points, or 0.30 per cent, to 19,580.32. The gauge had lost 366 points in last five trading sessions.

The broad-based National Stock Exchange index Nifty lost 20.40 points, or 0.34 per cent, to 5,938.80, after rising to 5,978.50 at the outset. As per the advance estimates of the Central Statistical Organisation, the GDP growth rate for the current fiscal is estimated to be at 5 per cent, the lowest in a decade.

The economy grew by 6.2 per cent in 2011-12 fiscal. Brokers said the market remained under pressure for the last five trading session on fears the government efforts might fail to narrow down the budget deficit. They said a weak trend in the Asian region and lower opening in Europe as investors await Chinese economic data further influenced the market sentiment.

The broad-based National Stock Exchange index Nifty lost 20.40 points, or 0.34 per cent, to 5,938.80, after rising to 5,978.50 at the outset.

NTPC stocks fell by 2.72 per cent to Rs 148.15. NTPC's mega share sale was over-subscribed just before the market close on Thursday. Cipla declined 2.61 per cent to Rs 394.05 after the company posted lower-than-market expectations earnings, while the market heavy Reliance Industries lost 0.44 per cent to Rs 871.05 on sustained profit-selling.

In 30-BSE index components, 18 stocks declined led by

consumer durable, realty power and metal sectors on fears the lower growth might cut demand of the products. However, a gain in IT, Auto and FMCG sectors saved the market from any major fall.

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