Sensex drops 700 pts, Nifty below 19,550 after Fitch downgrades US credit rating


As of August 2nd, the Indian equity market was facing pressure in the morning session due to weak cues from global markets, which negatively impacted investor sentiment. One of the contributing factors to this sentiment was the credit rating agency Fitch Ratings downgrading the US credit rating from AAA to AA+. Fitch cited ‘expected fiscal deterioration over the next three years’ as the reason for the downgrade. This development led to a decline in US stocks, triggering a spike in US yields on the benchmark 10-year bond to over 4 percent and an increase in the US dollar index to around 102.

The impact of the ratings downgrade and weak global cues was felt across Asian markets, with major benchmark indices such as Japan’s Nikkei 225, South Korea’s Kospi, and Hong Kong’s Hang Seng all opening lower. Similarly, the Indian benchmark indices followed the negative trend, opening lower and extending losses as the day progressed.

As of 11:07 am, the Indian benchmark indices were trading near their day’s low, with the Sensex down 693.46 points or 1.04 percent at 65,765.85, and the Nifty down 206.50 points or 1.05 percent at 19,527.00. The situation reflected the overall weak sentiment in the market as influenced by both global factors and domestic concerns.

1 thought on “Sensex drops 700 pts, Nifty below 19,550 after Fitch downgrades US credit rating”

  1. Meenakshi Patel

    If any one do option trading .. so that’s a great opportunity for them …. Aaj PE pe acha kam ho ga ….

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