Mumbai: Growth concern cast its shadow on the market as the flagship Sensex slipped marginally to close at 27,236 after IMF sharply lowered India's GDP estimate, with RIL proving to be a drag too.
The multi-lateral agency had cut India's growth rate for the current fiscal to 6.6 percent from its previous estimate of 7.6 percent due to the "temporary negative consumption shock" of demonetisation, which made investors anxious.
Reliance stock was in a tight spot as spending worries surrounding its telecom venture took some sheen off its quarterly results.
After opening higher, the 30-share BSE barometer ended at 27,235.66, down 52.51 points, or 0.19 percent. The gauge had climbed 50 points yesterday.
The 50-share Nifty index fell 14.80 points, or 0.18 percent, to 8,398 after shuttling between 8,440.90 and 8,378.30.
Key index heavyweights in metal, oil and gas, PSU, auto and banking sectors fell up to 1.52 percent.
Persistent foreign capital outflows and lower opening in Europe dampened sentiment.
RIL yesterday posted a 3.6 percent rise in its third quarter net profit. After making a weak opening, the stock lost 3.31 percent to close at Rs 1,041.30.
The ongoing corporate results and the Union budget -- due in February -- are also making participants tread cautiously though the headway over GST offered some relief.
"Market had started off with a positive sentiment supported by consensus over the rollout of GST, but this trend could not be continued as the investors mulled over 100 bps cut in GDP (forecast) by IMF to 6.6% in 2016-17," said Vinod Nair, Head of Research, Geojit BNP Paribas Financial Services.
Among the major losers, Coal India fell 2.14 percent, ONGC 1.74 percent, Adani Ports 1.68 percent and HDFC 1.02 percent.
NTPC advanced 3.08 percent, Asian Paints 2.72 percent, Axis Bank 1.98 percent, HUL 1.52 percent and ITC 1.35 percent.
Foreign portfolio investors (FPIs) dumped shares worth a net Rs 347.25 crore yesterday, as per provisional data.
US financial markets remained shut yesterday for Martin Luther King Junior Day. In Asia, Japan's Nikkei fell 1.48 percent as investors track a Brexit speech by UK Prime Minister Theresa May and Donald Trump's inauguration as US President.
However, Hong Kong rose 0.54 percent and Shanghai gained 0.17 percent.
European indices traded lower in their afternoon trade.
The BSE mid-cap remained unchanged while the small cap rose 0.33 percent. Both were better-off than the Sensex.
Out of the 30-share Sensex pack, 18 ended lower.
The market breadth turned negative as 1,378 stocks closed lower, 1,366 higher while 177 ruled steady.
The total turnover on BSE inched up to Rs 3,054.12 crore, from Rs 3,032.20 crore previously.
