Domestic markets opened weaker on Thursday after the International Monetary Fund (IMF) said that GDP growth in India will contract sharply by 4.5 per cent in the fiscal year 2020-21.

At around 9:30 am, BSE Sensex was below the 35,000-mark after dropping 170 points, while NSE Nifty was trading also trading lower by 0.38 per cent. There has been a noted spike in volatility in the market as well.

Some of the top gainers in morning trade were ITC, Bajaj Auto, Gail, Hero MotoCorp, Cipla, Maruti and Reliance. On the other hand, the top laggards were Infosys, Bharti Infratel, Axis Bank, HCL Tech, HDFC Bank, IndusInd Bank, Eichar Motors and ONGC.

All Nifty sectoral indices apart from Nifty Auto, FMCG and Pharma were trading in red, with bank stocks in deep negative territory.

Meanwhile, Canara Bank shares also dipped 5 per cent after its losses widened in its March quarter results.

Rising cases spook investors

Besides the IMF jolt, the sharp rise in the number of cases in India has also renewed fears among investors.

In the last 24 hours, India saw a jump of almost 17,000 coronavirus cases along with 418 deaths.

Over 4.7 lakh coronavirus cases have been registered in India so far, of which over 1.86 lakh are active cases.

The country now has 14,894 deaths due to the deadly virus, according to the latest data posted by the Union health ministry.

Investors are worried that the sharp rise in cases could again lead to the shutdown of key businesses in some areas where cases are still rising sharply.

Globally, stocks around the globe also slipped due to negative IMF projections.

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