Sensex dips to six-week low after US debt crisis
Sensex, today fell to a six-week low, below the 18,000-mark, and a bearish trend gripped broader markets as the crisis in the US over its high debt levels spooked global bourses.business Updated: Aug 03, 2011 20:03 IST
Sensex on Wednesday fell to a six-week low, below the 18,000-mark, and a bearish trend gripped broader markets as the crisis in the US over its high debt levels spooked global bourses.
The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened at 17,970.19 points, closed at 17,940.55 points, down 169.34 points or 0.94% from its previous close at 18,109.89 points.
The 50-scrip Nifty of the National Stock Exchange also ended in the red at 5,404.8 points, down 0.95%.
Broader markets too edged lower. The BSE midcap index closed 0.33% down and the BSE smallcap index ended 0.66% lower.
Capital goods, auto, healthcare, IT and consumer durables bore the brunt of the selling.
At the BSE, the market breadth was negative with only 1,160 stocks advancing, 1,706 scrips declining and 111 remaining unchanged.
According to data available with the Securities and Exchange Board of India (SEBI), foreign institutional investors sold stocks worth $18.7 million Wednesday.
Among gainers on the 30-scrip Sensex were Reliance Infra, up 2.76% at Rs 560.55; ITC, up 0.9% at Rs 206.65; Tata Power, up 0.71% at Rs 1,286.60; and Hindalco Industries, up 0.52% at Rs 165.70.
The losers on the benchmark were L&T, down 4.33% at Rs.1,658.70; Tata Motors, down 3% at Rs.927.75; DLF, down 2.15% at Rs 222.95; and Bajaj Auto, down 2.03% at Rs.1,455.40.
After the US Senate Tuesday approved an increase in the US debt ceiling, which will also require the government to reduce public spending, credit rating agencies downgraded or assumed a negative outlook on the country's sovereign debt.
China, which is the largest holder of US bonds, saw one of its major credit rating agencies Dagong Global Credit Rating Co, on Wednesday downgrade US sovereign debt and warn of further such moves.
The repercussions were felt in Asia.
The Japanese Nikkei Monday closed 2.1% lower at 9,637.98 points.
The Hang Seng of the Hong Kong stock exchange ended 1.91% down at 21,992.72 points, while the Chinese Shanghai composite index closed flat at 2,678.48 points.
European bourses too were ruling in the red.
Britain's FTSE 100 was ruling 0.86% down at 5,669.22 points, and the French CAC 40 was ruling 0.2% lower at 3,515.57 points.
The German DAX was 0.8% down at 6,742.46 points.