Indian stocks fell on Thursday after the International Monetary Fund steeply cut its growth outlook for the country and forecast a deeper global recession, with a surge in coronavirus cases also spooking investors.
The IMF predicted Indian economy to contract by 4.5% following a longer lockdown period and slower recovery than anticipated in April. It also expects global output to shrink 4.9% this year, much sharper than the 3% contraction predicted in April.
Domestic coronavirus virus cases surged over 456,000, while some U.S. states reported record increase in new cases on Wednesday and Australia posted its biggest daily rise in infections in two months.
The NSE Nifty 50 index fell 1% to 10,205.60 and the benchmark S&P BSE Sensex was down 0.90% at 34,571.27.
Asia’s stock markets slipped, bonds rose and the U.S. dollar was firm on Thursday.