Sensex closes in red; IT stocks down on profit booking

The Indian equity markets closed in red tracking global cues.

Sensex closed at 19608.76, down 0.38 percent and the Nifty closed at5942.35, down 0.06 percent.

Expressing disappointment over 5 percent growth,World Bank today said the Indian economy will soon get back to high growth path of 6 percent next year and more thereafter.

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“India is going to grow by 6 percent next year and we hope for even more increase in future,” World Bank President Jim Yong Kim said. Kim, who is on a three-day visit to India, was talking to reporters after meeting Finance Minister P Chidambaram here.

Additionally, Planning Commission Deputy Chairman Montek Singh Ahluwalia said that given the past track record, the Indian economy will grow in the range of 7-8 percent in the next four to five years.

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“It will be reasonable to assume that the growth rate would be 7 to 8 percent, which I would call passing grade. I am reasonably confident that over this four-five year period, that is going to be growth rate of Indian economy”, Ahluwalia said.

Adding further cheer, India’s exports rose by 4.25 percent to $26.26 billion in February. In February 2012, the overseas shipments stood at $25.19 billion.

Stocks in news

Pantaloon Retail closed up 0.35 percent in early trade on Monday as the company sold partial stake in insurance business.

Shares in India’s Ranbaxy Laboratories closed up 1.18 percent after Nomura upgraded the stock to “buy” from “neutral” and raised its target price to Rs 475 from Rs 415.

IT stocks fall on profit-booking after gaining last week on rupee depreciation and improving US economic outlook. TCS closed down 1.05 percent and Infosys closed down 0.82 percent.

Car sales in India slumped an annual 25.7 percent in February, the biggest fall in more than 12 years and the fourth consecutive monthly slide, an industry body said on Monday, as sluggish economic growth continues to weigh on demand in the once-booming market. Auto makers including Tata Motors closed 0.77 percent and Maruti Suzuki closed down 0.70 percent.

With inputs from Agencies