Tepid Global Trends Drag Key Indices Lower

Mumbai: Benchmark BSE Sensex dropped by 271 points on Monday, marking the second straight day of losses due to selling in IT and banking stocks and a weak trend in global markets after rating downgrade of the US by Moody’s Ratings.

The 30-share BSE barometer declined 271.17 points or 0.33 per cent to settle at 82,059.42. During the day, it dropped 366.02 points or 0.44 per cent to a low of 81,964.57. The NSE Nifty dipped 74.35 points or 0.30 per cent to 24,945.45.

“Markets languished in negative territory for major part of the trading session as weak Asian and European indices resulted in investors resorting to profit-taking in IT, capital goods and oil & gas shares,” Prashanth Tapse, senior V-P (research), Mehta Equities Ltd, said.

Also Moody’s downgrading US credit rating by a notch over the weekend created some sort of uncertainty amongst investors, Tapse added.

The broader market witnessed a mixed performance as the BSE smallcap gauge climbed 0.75 per cent and midcap index ended up by 0.27 per cent.

“Indian equity markets extended their losses for a second consecutive day on Monday, dragged down by a combination of weak global cues, sharp selling in IT stocks, and rising volatility,” Gaurav Garg, Analyst, Lemonn Markets Desk, said.

Investor sentiment took a hit after Moody’s downgraded the US sovereign credit rating to ‘Aa1’, citing the nation’s surging $36 trillion debt, he said.