Mumbai, Metal companies fell out of favour on Wednesday over growth concerns after the International Monetary Fund further revised down India's GDP growth rate.
Besides, investors are already in a fix over the exodus of foreign funds which has already crossed Rs 11,000 crore in the month of July till date.
The Sensex closed 135.09 points or 0.36 per cent lower at 37,847.65 from its Monday's close of 37,982.74 while the broader Nifty closed 59.75 points or 0.53 per cent to 11,271.30.
"Investors turned sellers on concerns that economy is moving through a slowdown phase. IMF lowered GDP growth forecast by 30 bps for 2019 based on weak domestic demand outlook which fuelled a sell off in a market where sentiment is already hurt due to tax concerns," said Vinod Nair, Head of Research, Geojit Financial Services.
Nair added that the mixed Q1FY20 results, outflow of foreign funds and weakening rupee weigh on investor sentiments going ahead.