The Indian equity market continued to bleed for the
sixth straight day witnessing a gap down start as investors' remained
under pressure from debt worries in the West. The US markets were
butchered overnight in first reaction to the credit downgrade by S&P
from its top notch AAA while, all the Asian counterparts were
witnessing bloodbath at this point of time. Back home, Sensex fell below
its crucial 16,600 mark, its lowest level since June 1 last year while,
Nifty, slipped below the 5,000-mark for the first time since June 10,
2010, with heavy selling in stocks like Reliance Industries, Infosys,
ICICI Bank and TCS. Moreover, the domestic bourses reeling under
pressure as there were no gainers on the 30 Sensex stocks. On the
sectoral front, software, technology and metal remained the top losers
on the BSE sectoral space while, there were no gainer on the index.
Meanwhile, Metal stocks like Tata Steel, Sterlite Industries, Jindal
Steel & Power, SAIL and Nalco crumbled in early trade after global
metal prices dropped on worries that global economic slowdown may crimp
demand for industrial metals. The broader indices too were struggling to
get some traction and were trading in the red at this point of time
while, the market breadth has made a negative start; there were 201
shares on the gaining side against 1,721 shares on the losing side while
44 shares remained unchanged.
The BSE Sensex opened at 16,517.87; about 472 points lower compared to its previous closing of 16,990.18, and has touched a high and a low of 16,613.39 and 16,432.00 respectively.
The index is currently trading at 16,570.81, down by 419.37 points or 2.47%. All the stocks remained on decline side on the index.
The overall market breadth has made a somber start with only 10.22% stocks advancing against 87.54% declines. The broader indices too were bleeding badly; the BSE Mid cap and Small cap indices were down by 2.03% and 2.51% respectively.
IT down by 3.90%, TECk down by 3.60%, Metal down by 3.17%, Realty down by 2.97% and HC down by 2.84%, were the top losers on the index. While, there were no gainer on the index.
Wipro down by 5.14%, TCS down by 5.209, Tata Steel down by 4.45%, Tata Motors down by 4.43% and Sun Pharma down by 4.12% were the top losers on the index. While, there were no gainer on the index.
Meanwhile, the global credit rating agency Standard and Poor's (S&P) has cautioned that after US it may reduce the sovereign rating of countries such as India, Japan and Malaysia, which are still trying to come out of the financial recession of 2008. Last week, S & P reduced the United States sovereign rating to AA+ from AAA with a negative outlook. In July, S & P had rated India BBB- with stable outlook.
S & P in its report on Asia-Pacific sovereigns has said, "The implications for sovereign creditworthiness in the Asia-Pacific would likely be more negative than previously experienced and a larger number of negative rating actions would follow."
"Fiscal capacities of Japan, India, Malaysia, Taiwan and New Zealand have shrunk relative to pre-2008 level," S & P said, adding further it said that these countries continue to bear the scars of the downturn.
During the time of financial meltdown in 2008, many economies including India, had given stimulus packages facilitating monetary growth and lower taxes to limit the adverse impact of the financial crisis. At that point of time, Indian government had given three fiscal stimulus packages of around Rs 1.86 lakh crore which helped to achieve the Indian economy to grow by 6.8% in 2008-09 and 8% in 2009-10. Before the financial crisis, the Indian economy was growing more than 9% for over a three financial years.
The rating agency said that the governments of these countries will have to use their own revenue streams to support their economies and financial sector once again. It further said that if a renewed slowdown comes, it would create a deeper and more prolonged impact.
The S&P CNX Nifty opened at 4,947.90; about 170 points lower compared to its previous closing of 5,118.50, and has touched a high and a low of 5,005.00 and 4,946.45 respectively.
The index is currently trading at 4,999.10, down by 119.40 points or 2.33%. There were just 3 stocks advancing against 47 declines on the index.
The only gainers of the Nifty were BPCL up by 0.99%, M&M up by 0.67% and ONGC up by 0.53%.
Wipro down by 4.71%, TCS down by 4.51%, Reliance Power down by 4.51%, Tata Motors by 4.06% and RCom was down by 4.04%, were the major losers on the index.
The BSE Sensex opened at 16,517.87; about 472 points lower compared to its previous closing of 16,990.18, and has touched a high and a low of 16,613.39 and 16,432.00 respectively.
The index is currently trading at 16,570.81, down by 419.37 points or 2.47%. All the stocks remained on decline side on the index.
The overall market breadth has made a somber start with only 10.22% stocks advancing against 87.54% declines. The broader indices too were bleeding badly; the BSE Mid cap and Small cap indices were down by 2.03% and 2.51% respectively.
IT down by 3.90%, TECk down by 3.60%, Metal down by 3.17%, Realty down by 2.97% and HC down by 2.84%, were the top losers on the index. While, there were no gainer on the index.
Wipro down by 5.14%, TCS down by 5.209, Tata Steel down by 4.45%, Tata Motors down by 4.43% and Sun Pharma down by 4.12% were the top losers on the index. While, there were no gainer on the index.
Meanwhile, the global credit rating agency Standard and Poor's (S&P) has cautioned that after US it may reduce the sovereign rating of countries such as India, Japan and Malaysia, which are still trying to come out of the financial recession of 2008. Last week, S & P reduced the United States sovereign rating to AA+ from AAA with a negative outlook. In July, S & P had rated India BBB- with stable outlook.
S & P in its report on Asia-Pacific sovereigns has said, "The implications for sovereign creditworthiness in the Asia-Pacific would likely be more negative than previously experienced and a larger number of negative rating actions would follow."
"Fiscal capacities of Japan, India, Malaysia, Taiwan and New Zealand have shrunk relative to pre-2008 level," S & P said, adding further it said that these countries continue to bear the scars of the downturn.
During the time of financial meltdown in 2008, many economies including India, had given stimulus packages facilitating monetary growth and lower taxes to limit the adverse impact of the financial crisis. At that point of time, Indian government had given three fiscal stimulus packages of around Rs 1.86 lakh crore which helped to achieve the Indian economy to grow by 6.8% in 2008-09 and 8% in 2009-10. Before the financial crisis, the Indian economy was growing more than 9% for over a three financial years.
The rating agency said that the governments of these countries will have to use their own revenue streams to support their economies and financial sector once again. It further said that if a renewed slowdown comes, it would create a deeper and more prolonged impact.
The S&P CNX Nifty opened at 4,947.90; about 170 points lower compared to its previous closing of 5,118.50, and has touched a high and a low of 5,005.00 and 4,946.45 respectively.
The index is currently trading at 4,999.10, down by 119.40 points or 2.33%. There were just 3 stocks advancing against 47 declines on the index.
The only gainers of the Nifty were BPCL up by 0.99%, M&M up by 0.67% and ONGC up by 0.53%.
Wipro down by 4.71%, TCS down by 4.51%, Reliance Power down by 4.51%, Tata Motors by 4.06% and RCom was down by 4.04%, were the major losers on the index.
All
the Asian equity indices were trading in the red; Shanghai Composite
was down 27.88 points or 1.10% to 2,498.94, Hang Seng was down 1,232.06
points or 6.01% to 19,258.51, Jakarta Composite was down 134.37 points
or 3.49% to 3,715.90, KLSE Composite was down 36.36 points or 2.43% to
1,460.63, Nikkei 225 was down 341.83 points or 3.76% to 8,755.73, Seoul
Composite was down 131.92 points or 7.06% to 1,737.53 and Taiwan
Weighted was down 53.50 points or 0.71% to 7,499.30.
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