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Sensex ends below 17K, falls 315 pts

The BSE Sensex ended 315 points lower on Monday, led by losses in software exporters, after S&P downgrade of the US sovereign debt rating triggered another selloff in global markets.
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BT Online Bureau   Mumbai     Last Updated: August 8, 2011  | 16:48 IST

The BSE Sensex ended 315 points lower on Monday, led by losses in software exporters, after S&P downgrade of the US sovereign debt rating triggered another selloff in global markets.

The Sensex ended at 16,990.18, after moving between the day's high and low of 17,247.87 and 16,759.45 respectively.

On the NSE, Nifty closed at 5,118.50, off 92.75 points.

The Sensex opened at nearly 400 points lower, at 16,907.57, following Asian markets lower. At around 10 am, the Sensex touched its day's low of 16,759.45, when it shed nearly 550 points. After that, the benchmark steadily pared its losses, touching its days' high of 17,247.87, a loss of just 58 points.

Again the selling pressure surfaced in the late trade as European markets remained lower.

Among the major Sensex losers, TCS and Infy fell nearly 4.5 per cent each while Tata Motors plunged 6.5 per cent. Other major losers included DLF and Hindalco, each off 6.8 per cent.


Indian stocks had plunged deep into the red in early trade on Monday, as the Sensex lost more than 500 points within minutes of the market opening, on concerns over the US losing its top-notch credit rating due to mounting debts.

PERSPECTIVE:What US' ratings downgrade means for India

Earlier in the day, share prices of Tata Motors, Tata Consultancy Services (TCS) and Wipro dropped more than 5 per cent, while Reliance Industries (RIL), ICICI Bank, Tata Steel and Bharti Airtel were also trading sharply lower.

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The sharp fall of this morning came in the first trading session after the United States lost its 'AAA' credit rating for the first time since 1917, as ratings agency S&P was not convinced with the efforts being made to tackle the country's debt problems.

Monday's fall follows an over 1,000-point decline in the Sensex over the last four trading sessions amid weak global cues.

Asian stocks open lower

All major Asian markets opened weak on Monday in the first trading session after the US lost its top-notch credit rating, as the debt crisis in America and Europe took a toll on the investor sentiment across the world.

South Korean shares opened 1.40 per cent lower in Seoul, even as the bourses there contemplated measures to counter any major plunge.

Forex reserves to cushion India

Japan stocks were also down over 1.3 per cent, while losses were also seen in a host of other Asian markets. The losses were much sharper at about 3 per cent in Hong Kong stocks.

The futures market was also down sharply in the US, continuing the downtrend of the previous week that saw over $2.5 trillion worth of investors' money wiped out in markets across the world.

Kaushik Basu says India should remain focused

Experts were expecting some sort of recovery later in the day after the initial shock, given the steps announced by global policymakers.

The G-7 economies have pledged to "take all necessary measures to support financial stability and growth", while the European Central Bank said it would actively buy eurozone bonds. Italy and Spain also announced new measures and reforms to bolster their economies.

The International Monetary Fund welcomed the statements made by the leaders of the G7 countries and European Central Bank on taking steps to ensure market stability.

"The swift implementation of the commitments by the Euro Area Governments on July 21, 2011, and the recent agreement to reduce the United States' fiscal deficit in the medium term, without undermining growth, are further critical elements for financial stability," IMF Chief Christine Lagarde said.

Ratings agency S&P this weekend downgraded the long-term sovereign rating of the US from the top 'AAA' level for the first time since 1917.

- With agencies inputs

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