The Nifty and the Sensex fell on news of S&P downgrade of India’s sovereign rating from BBB- (stable) to BBB- with a negative bias.
The Nifty shed 21 points to close at 5,202 and the Sensex lost 56 points to close at 17,151.
“S&P has stated the obvious.” said the Head of Research of a multinational brokerage.
“The whole world knows that India is being plagued by policy paralysis, high interest rates, inflation and lack of capital expenditure.”
Most stocks closed marginally in the red and the volatility index India Vix lost 1.6 per cent to close at 18.94.
Sterlite, Hero Motocorp, Sesa Goa, Bharti Airtel and Cairn were the top five Nifty gainers, while Wipro, RPower, Gail, Siemens and IDFC were the top losers.