BENGALURU, July 28 (Reuters) - Indian shares fell more than
1% on Wednesday, dragged by banking and pharmaceutical stocks,
after the International Monetary Fund trimmed its economic
growth forecast for the country.
The blue-chip NSE Nifty 50 index was down 1.33% to
15,537.55 by 0515 GMT and the benchmark S&P BSE Sensex
was 1.45% lower at 51,815.51, also tracking weak global cues.
"Global markets are the main reason for the fall in Indian
markets, led by a sell-off in Chinese tech stocks on a
regulatory crackdown there," said Siddhartha Khemka, head of
retail research at Motilal Oswal Financial Services, Mumbai.
Shares of InterGlobe Aviation, which runs India's
biggest airline IndiGo, fell as much as 4.3%, a day after the
company posted a record quarterly loss as the pandemic weighed
on a nascent recovery.
Carmaker Maruti Suzuki and consumer goods major
Nestle both were down about 1.4% ahead of their
The pandemic and related lockdowns are expected to impact
Maruti Suzuki's quarterly results, said Khemka.
IndusInd Bank shares rose as much as 2.3% and were the
biggest gainers on the Nifty 50, after the lender posted a rise
in both net profit and net interest income. However, the overall
banking index was down 1.59%.
Pharma stocks were 1.31% lower after Tuesday's
4.3% drop, dragged down by Dr Reddy's Lab, Torrent
Pharmaceuticals and Cipla Ltd.
The International Monetary Fund on Tuesday forecast India's
economy to grow 9.5% in 2021 - a cut of three percentage points
from its earlier forecast - citing a lack of access to vaccines
and renewed waves of COVID-19 cases.
Asian shares stayed stuck at seven-month lows, as markets
continued to digest a storm in Chinese equity markets, while the
dollar rested with traders reluctant to place large bets ahead
of the outcome of the Federal Reserve meeting.
(Reporting by Vishwadha Chander in Bengaluru; Editing by