Mumbai, Oct. 10: In a knee-jerk reaction to S&P’s rating downgrade threat, the Sensex today nosedived 162 points to close at 18631.10 on across-the-board selling, particularly in power, banks and PSU shares.
After resuming over 100 points lower, the BSE benchmark index failed to stage a recovery amid fresh concerns over the sluggish global economic growth and Eurozone debt crisis. The rupee also wilted under pressure and fell below the 53-mark against the dollar because of FII outflows, traders said.
“The S&P rating downgrade is speculative and probably a pressure tactic for more reforms. In any case, downgrades are not taken well,” said Kishor P. Ostwal, CMD, CNI Research Ltd.
With 27 stocks of the 30-share Sensex ending lower, the Sensex closed at 18631.10, down 162.26 points, or 0.86 per cent. The NSE Nifty fell below the 5700-level by losing 52.45 points, or 0.92 per cent, to 5652.15.
The SBI, which dropped 2.32 per cent, was the biggest loser on the BSE. It was followed by Tata Power, Hindalco, Bhel, NTPC and M&M. Wipro fell 1.72 per cent, while Infosys fell 1.3 per cent ahead of the September quarter’s results on Friday.
Private lenders HDFC Bank and ICICI Bank dropped around one per cent each. However, ITC, RIL and Hero MotoCorp bucked the trend. The total market breadth was sharply weak as 1,929 stocks closed with losses, while 978 finished with gains.