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Sensex falls; banks, auto stocks decline

Brokers trade on their computer terminals at a stock brokerage firm in Mumbai August 22, 2013. REUTERS/Danish Siddiqui/Files

Reuters Market Eye - The BSE Sensex fell as much as 0.38 percent on Wednesday while the broader Nifty was down 0.36 percent as caution prevailed ahead of July-September earnings season, while globally, concerns remained as the U.S. budget deadlock and debt ceiling debate dragged on.

Also, IMF cut India's GDP growth forecast to 3.8 percent from 5.6 percent for 2013 and to 5.1 percent from 6.2 percent for 2014.

State Bank of India Ltd (NSI:SBIN.NS - News) was down 1.1 percent after J.P.Morgan downgraded the stock citing asset quality pressures.

Mahindra and Mahindra Ltd (NSI:M&M) fell 1 percent while Maruti Suzuki India Ltd (NSI:MARUTI.NS - News) was down 0.8 percent after investment bank Jefferies downgraded the stocks.

Car sales in India have fallen nearly 6 percent in the current financial year to August, according to the Society of Indian Automobile Manufacturers, as high ownership costs in a slowing economy have prompted consumers to postpone purchases.

(Reporting by Abhishek Vishnoi)