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| Photo Credit: Arunangsu Roy Chowdhury
Equity benchmark indices Sensex and Nifty fell by 1% on August 2 on weak global market developments and steady foreign fund outflows.
Fitch Ratings has downgraded the United States authorities’s credit standing, citing rising debt on the federal, state, and native ranges and a “steady deterioration in standards of governance” over the previous 20 years.
The score was lower on Tuesday one notch to AA+ from AAA, the very best attainable score.
The 30-share BSE Sensex tumbled 676.53 factors or 1.02% to settle at 65,782.78. During the day, it cracked 1,027.63 factors or 1.54% to 65,431.68.
The NSE Nifty fell by 207 factors or 1.05% to finish at 19,526.55.
“The Indian market witnessed a broad sectoral slide, affected by weak global market trends. Negative news regarding the US rating downgrade on fiscal concerns, coupled with weak factory activity data from Eurozone and China, led to widespread worries across the globe.”
“Additionally, prolonged FII selling, triggered by a rise in US bond yields, has disrupted the mood of the domestic market,” mentioned Vinod Nair, Head of Research at Geojit Financial Services.
From the Sensex pack, Tata Steel declined 3.45%, adopted by Tata Motors which fell by 3.19%. Bajaj Finserv, NTPC, JSW Steel, State Bank of India, Larsen & Toubro and Bharti Airtel have been among the many different main laggards.
Nestle, Asian Paints, Hindustan Unilever and Tech Mahindra have been the gainers.
In Asian markets, Seoul, Tokyo, Shanghai and Hong Kong ended decrease.
European markets have been buying and selling within the crimson. The U.S. markets ended principally within the damaging territory on Tuesday.
Foreign Institutional Investors (FIIs) offloaded equities value ₹92.85 crore on Tuesday, based on alternate information.
Global oil benchmark Brent crude jumped 0.80% to $85.59 a barrel.
In a extremely risky commerce on Tuesday, the BSE benchmark declined 68.36 factors or 0.10% to settle at 66,459.31. The Nifty fell 20.25 factors or 0.10% to finish at 19,733.55.
