Fitch Financial News

MUMBAI : Benchmark indices closed in the red for the third straight session on selling by foreign portfolio investors (FPIs), despite global brokerage Morgan Stanley upgrading India’s sovereign rating to overweight, citing economic resilience. However, domestic funds’ buying in the last 45 minutes of trading contained the losses by the day’s end. The FPI selling, in the wake of a Fitch Ratings’ downgrade of US credit ratings on Tuesday, contributed to the rupee weakening to 82.73 to the dollar.

Late Tuesday, Fitch Ratings became the second of the three major credit-rating firms to remove its coveted triple-A assessment of the United States government’s credit worthiness

Wall Street tumbled to its worst day in months as its torrid rally that critics called overdone lost more momentum

Fitch ratings downgrade of USA will not affect mar... moreFitch ratings downgrade of USA will not affect markets in the long term, feel market analysts and investors.

(Reuters) — Wall Street's main indexes opened lower on Thursday as a jump in U.S. Treasury yields, spurred partly by Fitch's downgrade of U.S. long-term credit rating, pressured rate-sensitive shares.

Investing.com — Crude oil prices rebounded Thursday after the previous session’s sharp losses, as worries over tight global supplies offset the hit to risk sentiment caused by the downgrade of the U.S. credit rating.

By Alex Lawler

Legendary investor Warren Buffett told CNBC on Thursday that his conglomerate Berkshire Hathaway (NYSE:BRKa) «bought $10 billion in US Treasurys last Monday.»

Investing.com — U.S. stock futures slip, suggesting an extension in declines on Wall Street seen in the prior session, as traders continued to gauge the implications of Fitch's downgrade of America's credit rating earlier this week. Elsewhere, investors gear up for the release of quarterly results from tech giants Apple and Amazon, while Adidas sees a smaller 2023 loss thanks to strong sales of its leftover stock of Yeezy shoes.

By Samuel Indyk and Rae Wee

Explained: What is a rating downgrade? And six key reasons why Fitch Ratings downgraded US The move has the potential to affect the overall economy and hit investor confidence, leading to negative market sentiment. Moreover, the downgrade can also impact the US dollar in a negative way which is positive for gold since the yellow metal is priced in dollars. Investors prefer gold for investment in times of economic uncertainty.

In this article

Stock market today: Key benchmark indices extended sell of for second stright session on Thursday as global market cues continue to remain weak after Fitch downgrading US credit rating. Sensex today opened lower and went on to hit intraday low of 65,069 levels, logging near 1400 points in the last two trade sessions. Nifty 50 index and Bank Nifty index too remained under sell off pressure and went on to lose their immediate support placed after the closure of Wednesday deals.

Fitch's move to downgrade US rating as an excuse to book some profits off the table. Sensex has plunged about 1,500 points in 2 days while Nifty broke below the 19,300-zone. In the two-day selloff, investors have become poorer by Rs 5.7 lakh crore. While Fitch's statement had nothing new to offer as it is a well-known fact that developed market governments are getting more indebted, the downgrade of US rating to AA+ from AAA is seen as being sentimentally negative for riskier assets. In sync with the risk-off reaction in global and other Asian markets, Sensex plunged over 800 points on Thursday with Reliance Industries (RIL), banks and IT stocks leading the downside. Realty, banks and other financial stocks were among the worst affected but pharma stocks managed to thrive in the selling pressure on the back of Q1 earnings report card. Amid the global sell-off, Dalal Street traders also overlooked Morgan Stanley's upgrading of Indian equities to overweight position. Citing a structural uptrend, secular leadership and relative valuations being less extreme than in October, the global brokerage firm has placed India at the No.1 position in its basket of Asian emerging markets ex-Japan.

Yatharth Hospital IPO: After finalisation of share allotment on Wednesday, investors would be busy checking Yatharth Hospital IPO allotment status. For their information, they can do it online in two ways — first by logging in at the BSE website or at the website of its official registrar Link Intime India Private Limited. However, for convenience, they can do it with more ease by logging in at the direct BSE link — bseindia.com/investors/appli_check.aspx or at direct Link Intime web portal — linkintime.co.in/mipo/ipoallotment.html.

Sanjiv Bhasin, Director, IIFL Securities, says “dark horse play is very difficult to read but it is SW Solar. I gave you at 320, 340, it just hit Rs 400. It will be Rs 750 soon.

Steve Englander, Global Head of G10 FX Research and North America Macro Strategy, Standard Chartered Bank, says the “equity markets were overenthusiastic over the last couple of months. I do not think that the Fitch reason is any reason for them to sell off. But if we are right that the US is going into a moderate recession, it is actually going to be good for risk appetite because it will lower the discount factor in all asset markets.

Fitch's downgrade of the United States' credit rating, Indian equity markets opened in the red for the second straight session on Thursday, dragged by banking, financial and IT stocks. The BSE Sensex was trading 285 points or 0.43% lower at 65,497. Nifty50 was trading at 19,442, down 84 points or 0.43% at around 9.17 am.

Democrats and Republicans on Wednesday traded blame for the downgrade, with a group of hard-right conservatives promising to dig in during a looming spending fight that could shut down the federal government as soon as Oct. 1.

«Look, I think it is going be a little bit of the turbulence that we are seeing for the very short term. But it is going to pass under the water, like water under the bridge, because it is not really a credit risk problem that the US has,» says Arnab Das, EMEA, Invesco.What do you think the ratings cut impact will have on US markets and, of course, on emerging markets? Look, I think it is going be a little bit of the turbulence that we are seeing for the very short term. But it is going to pass under the water, like water under the bridge, because it is not really a credit risk problem that the US has.

«What it has done, it has shone a light on the fiscal deficit position, which is true because I think if you are going to run a fiscal deficit of 6% in peacetime or economic expansion time, then that does not bode really well,» says Manish Singh, Crossbridge Capital.What do you think because there has been a bit of dismissal of the new ratings downgrade by the Biden administration as well, some have called it out-dated that it defies reality. Do you hold the same opinion as well?I do. I think the timing is just plain dubious because if anything, a lot of this thing has been sorted out over the last few months.