S&P warning hits Indian markets, Nifty slides 28 pts

Written by PTI | Mumbai | Updated: Nov 8 2013, 02:55am hrs
Standard and PoorS&P warned that India could be downgraded if the next government fails to reverse the economic downtrend. Reuters
Bourses endured a volatile session and turned jittery after rating agency S&P's warned that India could be downgraded if the next government fails to reverse the economic downtrend, triggering a massive panic sell-off.

It sent the benchmark CNX Nifty index to close at a fresh one-week low before surrendering all its initial hefty gains, down 28 points, on the National Stock Exchange (NSE) today.

Financials, energy, FMCG, capital goods, auto and realty counters suffered the most. However, technology, metal and healthcare stocks bucked the general market trend.

After overcoming the initial hiccups, the key indices surged ahead witnessing a sharp recovery after two-session fall on the back of frantic across the board buying spree. It maintained the strong momentum despite intra-day volatility.

However, market took a sudden reversal towards the fag-end trade relinquishing all gains and smashing through crucial support levels to end the session with losses.

Global uncertainty against the backdrop of ECB policy decision and the US third-quarter GDP data later in the day alongwith a fresh currency concerns (which fell to five-week low) added further pressure on trading sentiment.

Global ratings agency Standard & Poor's (S&P) maintained "negative" outlook on India's sovereign ratings and warned of a likely downgrade in 2014 if the new government fails to spur economic growth.

Investors sitting with huge profit created a convenient excuse to take some profits out, though some sections of investors aren't worried about the market reaction and short-term impact considering the fundamentals, traders said.

The 50-share index fluctuated widely between a high of 6,288.95 and a low of 6,180.80 before concluding at 6,187.25, posting a loss of 27.90 points, or 0.45 per cent, over the last close.

Bank of Baroda, DLF, BHEL, Axis Bank, BPCL, Indusind Bank, SBIN, ICICI Bank, IDFC and Grasim were the top losers.

Among the notable gainers included Tata Steel, HCL Tech, Hindalco, Infosys, TCS, Bajaj Auto, Sesa Sterlite, Sun Pharma, Dr Reddy and ONGC.

The turnover in the cash segment rose to 11,676.36 crore from 10,931.45 crore yesterday. A total of 6,860.59 lakh shares changed hands in 61,36,560 trades, while market capitalisation stood at Rs 66,54,575 crore.