After a positive start, capital market slipped into the red following profit-booking and industry coming down heavily on the Government and CBI for filing FIR against Aditya Birla Group Chairman Kumar Mangalam Birla and retired top bureaucrats in the coal case.
Reacting to the FIR against Birla, the Federation of Indian Chambers of Commerce and Industry said the key to sustaining economic growth and promoting development is good governance and quality decision-making.
“In the recent past, we have been witness to some very unfortunate developments. We find that cases are being registered against top bureaucrats and industry icons. It goes without saying that such developments dent the national psyche and also dampen investor confidence; both domestic and foreign,” FICCI President, Naina Lal Kidwai, said in a statement.
"There is also a feeling that with repeated episodes of a trust deficit between the industry and Government, the business sentiment and the investment environment would be vitiated and India could slip further from the growth trajectory that is so necessary for us to maintain,'' she added.
The BSE benchmark index opened marginally higher at 20,579 against the previous close of 20,547. It made a high of 20,629 and low of 20,375. It closed down 132 points at 20,415.
The CNX Nifty was down 49.85 points or 0.82 per cent at 6,039.20. The index hit a low of 6,032.55 intra-day, its lowest level in the last one week. The index hit a high of 6,110.75 in the intra-day trade.
The World Bank had on Wednesday lowered its forecast for India’s economic growth to 4.7 per cent from 6.1 per cent for the current fiscal year, citing a sharp slowdown in manufacturing and investment as well as negative business confidence.
Axis Bank gained one per cent to Rs 1,095 after it reported 21 per cent rise in net profit at Rs 1,362 crore in the September quarter. The results were announced during trading hours.
Shares of top two-wheeler makers were in demand after Bajaj Auto reported better-than-expected Q2 results. Hero MotoCorp was up one per cent at Rs 2,071, Bajaj Auto rose two per cent to Rs 2,165 and TVS Motor Company increased up three per cent to Rs 45.
Major losers for the day include TCS (-5%), Tata Motors (-4%) and L&T (-4%).
Foreign institutional investors (FIIs) had bought shares worth Rs 1,136 crore on Tuesday.