Sensex and Nifty opened little lower on Monday as S&P kept its rating unchanged and the pessimism flow after the Asian stocks edged down in the early trade today led by the dull Chinese and South Korean markets. BSE Sensex lost 38.73 points to open at 33,640.51 whereas NSE Nifty dropped 28.65 points to begin at 10,361.05. The sell-off in the heavyweight shares of HPCL, Power Grid, Infosys, IOC, Adani Ports, BPCL steered the key indices Sensex and Nifty to trade lower.
Shares of ONGC, L&T, NTPC were among the major gainers on Sensex, advanced up to 1.2% while Infosys, Adani Ports, Power Grid, HUL lost up to 1.4%. The benchmark Sensex shaved off 115.91 points to hit the day’s low of 33,563.33 and NSE Nifty slipped 41.65 points to mark the day’s low at 10,348.05.
Earlier on Friday last week, close on the heels of Moody’s upgrading India’s sovereign credit rating, another global agency Standard & Poor’s kept its rating unchanged at ‘BBB-‘ while also keeping the outlook ‘stable.’ S&P took a favourable view of Narendra Modi administration’s economic reforms undertaken and lauded India’s fiscal consolidation drive but refrained from upgrading the credit rating from the current ‘BBB-‘, the lowest investment grade. Notably, S&P had last upgraded India’s rating from junk grade “BB+” to lowest investment grade “BBB-” 10 years ago in 2007.
Meanwhile, among the Asian markets, China’s Shanghai Composite Index fell 0.8% to 3,327.65 and Japanese Nikkei 225 lost 0.3% to 22,477.31, South Korea’s Kospi plunged 1.4% to 2,508.72 and Hong Kong’s Hang Seng lost 0.8% to 29,637.40. The euro reached a two-month high against the dollar.
US stocks ended at record closing highs on Friday with the Technology stocks leading the key indices. The S&P ended above 2,600 points for the first time, while Amazon and retail stocks got a boost from signs of a strong start to the holiday shopping season. The benchmark S&P 500 and the blue-chip Dow Jones industrials posted weekly gains for the first time in three weeks while the Nasdaq Composite posted its best weekly performance since the week to 1 September, Reuters reported. The Dow rose 31.81 points, or 0.14% to 23,557.99, while the S&P gained 5.34 points, or 0.21% to 2,602.42. The Nasdaq added 21.80 points, or 0.32% to 6,889.16.