Indian equity benchmark -- Nifty -- ended flat on Wednesday ahead of weekly F&O expiry. Index made a slightly positive start but failed to protect its gains and soon turned negative as traders were worried after First Advance Estimates released by the National Statistics Office (NSO) estimated that Indian economy to slow to a four-year low of 6.4 per cent in FY25, falling short of the Reserve Bank of India’s (RBI’s) projection of 6.6 per cent. In FY24, gross domestic product (GDP) had grown at 8.2 per cent. Separately, driven by a slowdown in government capital expenditure and sluggish private investments, growth in infrastructure investment is expected to moderate in the current financial year (FY25) compared to FY24.
Market added more losses to touch day’s low level in afternoon session. Some concerns came as the State Bank of India (SBI) has revised its forecast for India's GDP growth in FY25 to 6.3 per cent, slightly lower than the National Statistical Office's (NSO) estimate of 6.4 per cent. SBI noted a ‘downward bias’ in its projection, citing several challenges affecting economic growth. According to the SBI report, the slowdown in manufacturing and credit growth, coupled with the impact of a high base effect, has dampened expectations for FY25. In final hour of the trade, index managed to trim most of their initial losses and ended flat.
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