The S&P BSE Sensex and NSE Nifty 50 indexes fell for the second day in a row, weighed down by weakness in metal, auto, FMCG and banking shares. The benchmarks opened lower in trade on Tuesday after the International Monetary Fund (IMF) on Monday lowered growth estimate for India to 4.8 per cent for financial year 2019-20, citing stress in the non-bank financial sector and weak rural income growth as the major factors for the downward revision. A slew of weak earnings from top companies also dampened the investor sentiment, and led to a correction from record highs for the Sensex and Nifty, analysts said.
The Sensex ended 205 points or 0.5 per cent lower at 41,324 and the NSE Nifty 50 index fell 55 points or 0.45 per cent to close at 12,170.
While providing an update on the global economy ahead of the World Economic Forum (WEF) annual summit, the IMF cut its India growth forecast to 4.8 per cent for 2019.
It expects growth to be 5.8 per cent in 2020 and rise to 6.5 per cent in 2021.
India-born IMF Chief Economist Gita Gopinath said growth in India slowed sharply owing to stress in the non-bank financial sector and weak rural income growth.
Nine of 11 sector guages compiled by the National Stock Exchange ended lower, led by the Nifty Realty index's 1.4 per cent fall. Nifty Metal, Nifty Auto and Nifty FMCG indexes also declined 0.9-1.3 per cent each.
On the other hand, Nifty Media index was top gainer, up 2.2 per cent.
Mid- and small-cap shares ended on a mixed note as the Nifty Midcap 100 index fell 0.12 per cent while Nifty Smallcap 100 index ended marginally higher.
Tata Steel was top loser in the Nifty 50 basket of shares; the stock fell 3.3 per cent to close at Rs 474.50. Mahindra & Mahindra, Tata Motors, Asian Paints, Maruti Suzuki, Indian Oil, Vedanta, Power Grid, Eicher Motors, JSW Steel, Cipla and ITC were also among the losers.
On the flip side, Bharti Infratel, Zee Entertainment, Bharat Petroleum, Coal India, Kotak Mahindra Bank, HDFC and UltraTech Cement were among the gainers.