Markets resume downward spiral; banks, financials weigh

Equity benchmarks slipped into the negative territory on Thursday, led by banking, financial and auto stocks, as weak growth signals clouded the outlook for the ensuing results season.

After sinking 375 points during the day, the 30-share BSE Sensex ended 297.55 points, or 0.78 per cent, lower at 37,880.40.

Similarly, the broader NSE Nifty fell 78.75 points, or 0.70 per cent, to close at 11,234.55.

Investors turned risk averse amid expectations of tepid earnings by corporates, brokers said.

Moreover, Moody's Investors Service on Thursday slashed its 2019-20 GDP growth forecast for India to 5.8 per cent from 6.2 per cent earlier, saying the economy was experiencing a pronounced slowdown which is partly related to long-lasting factors.

Kicking off the earnings season, IndusInd Bank logged a 52.2 per cent jump in Q2 consolidated net profit, but also reported a spike in bad loans, which sent its shares tumbling 6.15 per cent -- the most among the Sensex constituents.

Other index laggards .