Thaindian News

Mumbai, Oct 5 (IANS) A benchmark index for Indian equities closed in the negative terrain for the fourth straight day Wednesday as the State Bank of India’s ratings downgrade dampened sentiments on Dalal Street.

The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE) opened in the positive at 15,967.72 points and closed at 15,792.41 points, down 0.46 percent or 72.45 points from its previous close at 15,864.86 points.

The Sensex was in the positive in the morning session and slipped into the red in the afternoon due to heavy selling pressure in banking stocks. The 30-scrip index touched a high of 16,044.91 points and low of 15,760.53 points points in the intra-day.

This is the fourth consecutive day of slide in the benchmark Sensex. The index had tumbled 289 points Tuesday.

The 50-scrip S&P; CNX Nifty of the National Stock Exchange also closed in the red for the fourth straight trading session. The Nifty closed 0.44 percent down at 4,751.30 points, after sliding 1.6 percent Tuesday.

State Bank of India, the country’s largest lender, slumped for the second day after Moody’s downgraded its ratings. SBI slumped 4 percent at Rs.1,715.30, after sliding 4.1 percent the previous day.

Global ratings agency Moody’s Investor Service Tuesday downgraded State Bank of India’s “financial strength rating” to D+ from C- citing the low capital adequacy and the bank’s recent failure to raise capital and deteriorating asset quality. The agency has also cut the bank’s hybrid debt rating to Ba3 from Ba2.

The country’s largest private sector lender ICICI Bank closed 2.72 percent down at Rs.778.95.

The broader markets as well as the most sectoral indices also closed in the red. Banking index of the BSE slumped 2.52 percent at 9,961.54, the lowest level in almost two years. The BSE midcap and smallcap indices fell nearly one percent.

Other major Sensex losers were: Hindalco Inds, down 3.65 percent at Rs.120.15; HDFC Bank, down 2.65 percent at Rs.438.35; Jindal Steel, down 2.55 percent at Rs.445.35; BHEL, down 2.36 percent at Rs.315.10 and Maruti Suzuki, down 1.95 percent at Rs.1,084.95.

Prominent gainers were: Jaiprakash Asso, up 3.86 percent at Rs.71.30; DLF, up 2.63 percent at Rs.206.45; Sun Pharma, up 1.70 percent at Rs.460.15; Coal India, up 1.55 percent at Rs.324.70 and ITC, up 1.46 percent at Rs.194.40.

Other Asian markets also closed weak. Japan’s Nikkei fell 0.86 percent at 8,382.98 points and the Hong Kong’s Hang Seng index slumped 3.40 percent at 16,250.30 points.

China’s Shanghai Composite index closed 0.26 percent down at 2,359.22 points.

European stocks rose after finance ministers agreed to safeguard banks from spreading sovereign debt crisis.

Britain’s FTSE100 was 2.30 percent higher at 5,058.17 points, the German DAX was trading 3.68 percent higher at 5,408.45 points.

The French CAC 40 was trading 3.32 percent higher at 2,945.25 points in the afternoon session Wednesday.