Indian equities open lower despite good GDP forecast

New Delhi: Equity benchmarks opened lower on Tuesday with market breadth leaning in favour of sellers.

At 10:00 hrs, the S&P BSE Sensex Index was down 140.89 points or 0.40 percent at 36,432.87.

Meanwhile, the NSE Nifty 50 Index fell 54.20 points or 0.41 percent to 10,917.15.

The International Monetary Fund (IMF) trimmed its global growth forecast for 2019 by 0.2 percentage points and for 2020 by 0.1 percentage points below last October’s projections to 3.5 percent and 3.6 percent, respectively.

This is largely due to weaker performance in some economies in Europe and Asia amid trade wars.

However, India’s GDP is expected to expand 7.5 percent in FY20 and 7.7 percent in FY21, said IMF in its update of the flagship World Economic Outlook released in Davos.

“India’s economy is poised to pick up in 2019, benefiting from lower oil prices and a slower pace of monetary tightening than previously expected, as inflation pressures ease,” it said.