On weak global sentiments Sensex crashes more than 800 points

Mumbai: Weighed by the tepid global sentiments, Sensex crashed more than 800 points on Wednesday in the intra-day trade as investors resorted to selling spree in the Dalal Street.

At 1.30 pm on Wednesday, the benchmark indices the S&P BSE Sensex tumbled 814 points or 1 per cent to hit day's low of 65,644, whereas Nifty50 lost 206 points or 1 per cent to day's low of 19,517 levels.

Bears tightened their grip on domestic markets in Wednesday's intra-day trade, as global sentiments turned sour post Fitch credit rating downgrade of the US.
 
Broader markets, too, exhibited weak trends as Nifty Midcap 100 and Nifty Smallcap 100 indices slipped up to 1 per cent. 
 
All sectors, meanwhile, nosedived in the sea of red, with Nifty Metal, Nifty PSU Bank, and Nifty Oil & Gas emerging as some of the worst performers.

However, analysts expect this downtrend to be short-lived.

Fitch downgrades US credit rating: Overnight, the US markets largely closed on a soft note after Fitch downgraded credit rating to AA+ from AAA. Major averages Dow Jones ended flat, while the S&P 500 and NASDAQ Composite indices slipped up to 0.4 per cent.

As investors use credit ratings to understand how risky it is to lend money to a government, 

Fitch said that the downgrade reflected "expected fiscal deterioration over the next three years and growing government debt burden."

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