Indian Stock market reacted negative on S&P ratings

MUMBAI: The National Stock Exchange's Nifty shed most of the intraday losses, after reacting to S&P's outlook revision on India, and closed near intermediate support levels. Gains in FMCG, auto and healthcare were offset by losses in power, realty and technology. Rating agency S&P revised India's outlook to negative from stable while affirming a 'BBB-' rating, as reported. The negative outlook signals at least a one-in-three likelihood of a downgrade of India's sovereign ratings within the next 24 months.

S&P expects the government to face headwind in implementing policy measures to improve its fiscal and macroeconomic parameters in the near future, given the current unfavorable political environment.

The Nifty ended at 5,201.75, down 20.90 points, or 0.40 percent. It has touched an intraday high of 5,236.10 and a low of 5,160.65.

The Sensex closed at 17,170.77, down 36.52 points, or 0.21 percent. It touched an intraday high of 17,249.61 and a low of 17,019.24.

The BSE Midcap Index was down 0.52 percent and the BSE Smallcap Index moved 0.53 percent lower.

Among sectoral indices, the BSE Power Index was down 1.45 percent, the BSE Realty Index fell 1.37 percent, the IT Index declined 1.31 percent and the BSE Oil & Gas Index was down 0.54 percent. The BSE FMCG Index was up 0.55 percent and the BSE Auto Index moved 0.23 percent higher.