Sensex drops below 17K after historic US rating downgrade
Tags:
A downgrade of US government debt sent equity shares tumbling in early trade today, with the BSE benchmark Sensex and the 50-unit S&P CNX Nifty hitting their lowest levels in nearly 14 months.
The Sensex resumed lower at 16,907.57 and dropped further to 16,759.45 before quoting at 16,787.55 at 1015 hours, showing a net loss of 518.32 points, or 3.00 per cent, from last weekend's level.
The NSE's 50-share Nifty index also dropped by 147.45 points, or 2.83 per cent, to 5,063.80 at 1015 hours.
All the components of the 30-share Sensex pack fell. Index heavyweight Reliance Industries (RIL) lost over 2.5 per cent to a 52-week low of Rs 767.15 in intra-day trade today. Metal stocks extended Friday's decline on worries that the global economic slowdown may crimp demand.
Among the major losers in the Sensex pack, Tata Motors was down by 5.24 per cent, TCS by 5.09 per cent and DLF by 3.54 per cent.
FIIs sold shares worth a massive Rs 1,788.96 crore on Friday, as per provisional data from the stock exchanges.
Asian stocks slumped in early trade with US index futures sharply lower as investors were shaken by a downgrade of the long-term US sovereign rating by ratings agency Standard & Poor's from AAA to AA+ with a negative outlook on Friday.
The key benchmark indices in South Korea, Singapore, Indonesia, Hong Kong, Taiwan, China and Japan were down by between 1.31 per cent and 3.99 per cent.
Trading in US index futures indicated that the Dow could plunge by 239 points at the opening bell today.
Post new comment