Indian shares fell 0.24 percent on Tuesday as global rating agency Standard and Poor's lowered its outlook on India's long-term sovereign credit rating to negative from stable, dealers said. The benchmark 30-share Sensex index slipped 21.15 points to 8,822.06. The market posted gains in afternoon trade but fell again after news of the ratings agency's revised outlook.
"The outlook revision reflects our view that India's fiscal position has deteriorated to a level that is unsustainable in the medium term," Standard and Poor's credit analyst Takahira Ogawa said. "The upward move in the market halted when global agency (Standard and Poor's) revised the credit rating on India," said Alex Mathew, head of research at Geojit Financial Services.
Shares in fraud-hit Satyam Computer Services fell 3.41 percent or 1.55 rupees to 43.9 on profit-taking. It earlier rose nearly three percent to an intraday peak of 46.4 after the company said it might invite interest from potential bidders by the weekend.In Tuesday's trade, losers led gainers 1,613 to 790 on turnover of 24.48 billion rupees (491 million dollars).
HDFC fell 64.65 rupees or 4.78 percent to 1,289 while TCS fell 7.45 rupees or 1.57 percent to 466.5. State Bank of India declined 18.35 rupees or 1.75 percent to 1,028.25 on global concerns about the banking and finance sectors. Tata Steel fell 7.5 rupees or 4.46 percent to 160.55 on concern about weakening demand for metals.
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