Sensex closes in red, falls 34 points on IMF growth forecast cut

Paring its early gains, the 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 International Monetary Fund (IMF).

The 30-share Bombay Stock Exchange benchmark touched the day's high of 17,191.12, but failed to sustain these levels on lower opening in Europe.

HOW THE MARKETS FARED

Selling pressure gathered momentum as IMF cut its estimate for India's 2012 growth to 7.5 per cent.

The Sensex had declined 17 per cent this year on concerns 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.

Europe troubles deepen, S&P downgrades Italy's credit rating

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 1.57 per cent to Rs 838.10 and auto major Maruti Suzuki India 2.65 per cent to Rs 1,124.10.

The oil and gas sector index suffered the most - falling 1.16 per cent to 8,741.86, followed by auto index - 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.

- WITH PTI INPUTS