Indian shares fell sharply on Wednesday, mirroring weak cues from global markets as data showing a slowdown in global manufacturing activity in July and Fitch’s downgrade of the U.S. credit rating by one notch spurred risk aversion.
While the move led to a sell-off in risky assets, there was little reaction in the dollar.
Analysts said the downgrade mainly reflects governance and medium-term fiscal challenges but does not reflect new fiscal information.
The benchmark S&P BSE Sensex hit an intraday low of 65,431.68 before recouping some losses to end the session down 676.53 points, or 1.02 percent, at 65,782.78 amid expectations that the negative knee jerk reaction will be short lived.
Similarly, the broader NSE Nifty index settled 207 points, or 1.05 percent, lower at 19,526.55, after having hit a low of 19,423.55 earlier in the day.
NTPC, Bajaj FinServ, Tata Motors, Tata Steel and Hero MotoCorp all fell about 3 percent in the Nifty pack while Hindustan Unilever, Nestle India and Divis Laboratories rose between 0.8 percent and 1.5 percent.
Sensex, Nifty Tumble On Risk Aversion After US Rating Downgrade
2023-08-02 10:22:58
