Dalal Street indices wobble with global weakness
Fitch's downgrade of US long-term credit rating. BSE Sensex fell 542 points, or 0.82%, to at 65,240. NSE's Nifty declined 144 points, or 0.74%, to end at 19,381.
Titan, ICICI Bank and Bajaj Finserv lost 2-3%. Both indices had fallen as much as 1.2% in early trade but managed to recoup part of the losses with the Nifty rebounding after slipping below 19,300 briefly. Analysts said technical indicators are pointing to some more weakness in the market in the near-term as the sentiment in global markets has turned risk-off after Fitch cut the rating of the US by one level to AA+ from the top-notch AAA.
The next major support for the Nifty is at 19,161, which is the 50-Day Exponential Moving Average for the index, said Ashwin Ramani, derivatives & technical analyst at Samco Securities. «A break below the 50-EMA can drag the Index until 18,600 levels,» said Ramani. The Sensex and Nifty had fallen 1% each on Wednesday in reaction to the US downgrade.
Elsewhere in Asia on Thursday, markets ended mostly weak. Japan sank 1.7%, Hong Kong fell 0.5%, South Korea declined 0.4% and Taiwan dropped 1.9%. China gained 0.6%.
The pan-Europe index Stoxx 600 was down 0.8% at the time of going to print. At home, Nifty Bank index slid over 1%, while the Nifty Realty dropped about 1.8%. Pharma stocks bucked the weak trend with the Nifty Pharma index gaining over 1%.
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