Sensex, Nifty fall for 3rd day as U.S. rating downgrade triggers global equity sell-off

Mumbai Benchmark Sensex tanked 542 points to 4-week low, Nifty closed below 19,400 mark. Global markets bearish due to US rating downgrade, 23 Sensex stocks fell, 7 advanced.

Benchmark Sensex tanked 542 points to settle at a four-week low while Nifty closed below the 19,400 mark, extending their losses for a third straight day on Thursday in tandem with a bearish trend in global markets following the U.S. rating downgrade.

The 30-share BSE Sensex fell by 542.10 points or 0.82% to settle at a four-week low of 65,240.68. During the day, it slumped 819.7 points or 1.24% to 64,963.08.

The NSE Nifty declined below the 19,300 mark in intraday trade before paring some of the losses to close at 19,381.65, still down by 144.90 points or 0.74%. It moved in a range of 19,537.65 to 19,296.45 in day trade.

In three days of losses, Sensex plunged by around 1,287 points or 2.16% while Nifty has tanked 372 points or 2.42%.

"Global markets are still grappling with the impact of the U.S. rating downgrade, with spiking bond yield and strengthening dollar index," Vinod Nair, Head of Research at Geojit Financial Services said.

Fitch Ratings lowered the U.S. government credit rating by one level, citing rising debt and a steady deterioration in standards of governance. The downgrade triggered a sell-off in U.S. stock markets.

From the Sensex pack, Titan fell the most by 2.56% after the company reported a 4.3% drop in consolidated net profit at ₹756 crore for the June quarter.