Impact of US rating downgrade: Sensex down by 132 points today

BSE Sensex was down 123 points in commerce on Thursday morning because the market absorbed the affect of the US downgrade. Sensex was buying and selling at 65,659 points after a steep fall on Wednesday. Titan led the Sensex losses down virtually 3 per cent.

V. Okay. Vijayakumar, Chief Investment Strategist at Geojit Financial Services stated typically inventory markets are impacted by surprising occasions. When market valuations are excessive, the dump will probably be sharp. This was what occurred in international markets after the Fitch downgrade of the US credit score rating.

The US financial system’s mushy touchdown narrative, that’s driving the continued international rally, is unbroken and getting stronger. GDP development within the US is powerful and inflation is coming down. 80 per cent of the US corporations have posted higher than anticipated quarterly outcomes.

The Fitch downgrade does not alter this vital macro assemble. The sentimental affect of the rating downgrade is prone to fade away quickly, he stated.

The valuations in India proceed to be wealthy from the short-term perspective, however truthful for long-term buyers. Weakness available in the market could also be used to slowly accumulate prime quality shares which have corrected.

Leading shares in banking, capital items and construction-related segments look good for long-term funding, he stated.

(With inputs from IANS)