Sensex, Nifty Fall As Financials Weigh, Relief Steps Fail To Impress

Economists said new guarantees on bank loans to small businesses and tourism sectors would not be sufficient to boost economic growth.

Indian equity benchmarks edged lower on Tuesday, as financial stocks fell, and economists doubted whether the new loan guarantees announced by the government as relief measures would boost growth. By 2:32 pm, the blue-chip NSE Nifty 50 index was down 0.30 per cent at 15,767.20 and the benchmark S&P BSE Sensex fell 0.26 per cent to 52,597.28. "All positive factors are already incorporated in the market, and there is no big event or positives which can help a further rally... We are seeing a bit of consolidation," said Gaurav Garg, head of research at CapitalVia Global Research in Mumbai. Industry leaders and economists said on Monday government's new guarantees on bank loans to small businesses and tourism sectors, announced by the finance minister, would not be sufficient to boost economic growth.