Mumbai Sensex closes down as growth forecast lowered

The Mumbai Sensex retreated at close of play in India this morning (February 7th), after decision-makers cut the country's growth forecast to five per cent.

This is the second time in two weeks the projection has been revised down, as it reflects the underlying difficulties the nation is facing as it works to stimulate its flagging economy.

Last week, India's central bank slashed its forecast to 5.5. per cent from 5.8 per cent.

The official Indian statistical office has projected economic expansion of five per cent for the year to March 31st 2013, based on advanced predictions.

Growth in the country has slowed in recent months due to several factors, including the downturn in its key manufacturing and services sectors.

India's economy expanded by 5.3 per cent from a year earlier in the July-September quarter, which is the slowest pace in three years.

At market close in Mumbai this morning, the Sensitive Index retreated by 0.2 per cent to an index value of 19585.4 points.

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