Sensex slips to six-week low spooked by US debt crisis (Roundup)

August 3rd, 2011 - 6:59 pm ICT by IANS  

Sensex Mumbai, Aug 3 (IANS) A benchmark index for Indian equities markets 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 percent from its previous close at 18,109.89 points.

The 50-scrip S&P; CNX Nifty of the National Stock Exchange also ended in the red at 5,404.8 points, down 0.95 percent.

Broader markets too edged lower. The BSE midcap index closed 0.33 percent down and the BSE smallcap index ended 0.66 percent 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 percent at Rs.560.55; ITC, up 0.9 percent at Rs.206.65; Tata Power, up 0.71 percent at Rs.1,286.60; and Hindalco Industries, up 0.52 percent at Rs.165.70.

The losers on the benchmark were L&T;, down 4.33 percent at Rs.1,658.70; Tata Motors, down 3 percent at Rs.927.75; DLF, down 2.15 percent at Rs.222.95; and Bajaj Auto, down 2.03 percent 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., Wednesday downgrade US sovereign debt and warn of further such moves.

The repercussions were felt in Asia.

The Japanese Nikkei Monday closed 2.1 percent lower at 9,637.98 points.

The Hang Seng of the Hong Kong stock exchange ended 1.91 percent 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 percent down at 5,669.22 points, and the French CAC 40 was ruling 0.2 percent lower at 3,515.57 points.

The German DAX was 0.8 percent down at 6,742.46 points.

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