Slowing GDP growth and political roadblocks to economic policy making are just some of the factors pushing up the risk that India's (unsolicited BBB-/Negative/A-3) could lose its investment-grade rating.
That's according to a recently released report by Standard & Poor's Ratings Services, titled "Will India Be The First Bric Fallen Angel?"
The report states that the Indian government's reaction to potentially slower growth and greater vulnerability to economic shocks could largely determine whether the country can maintain an investment-grade rating or become the first "fallen angel" among the Bric nations.
The BSE benchmark index- Sensex fell 226 points from the day's high level to close at 16,668 and the 50-share Nifty slipped 56 points from the highs to shut shop at 5,068.
In intra-day deals the Nifty crossed above the crucial psychological 5,100 and registered a high of 5,124.
The European markets were trading on a strong note after the Eurozone finance ministers decided to grant a 100 billion euro bailout to struggling Spanish banks.
Following this development, Spain's IBEX index surged 2.6% to 6,725 levels. CAC40 index, DAX and FTSE 100 were also trading higher by 1-2% each.
The Asian markets also ended higher in trades today following the bailout for Spanish banks.
The Hang Seng advanced 2.4% or 451 points at 18,954, Nikkei advanced 165 points to 8,624 and the Kospi ended higher by 31 points at 1,867 levels.
Reliance Industries ended down 1% on profit booking after recent gains post the company's AGM. Capital goods majors which gained sharply last week after the government's intent to revive the infrastructure space also witnessed profit taking at higher levels.
L&T ended down 2% at Rs 1,283 after rising over 15% last week while BHEL ended down 2.2% at Rs 216.
Auto stocks which had gained last week on hopes of a rate but by the RBI at its June 18
Markets end tad higher led by oil shares
Markets end higher led by FMCG
Moved by children's plight, Delhi HC sets beggars free
Bulls take control. Indian markets end at 1-mth high
Markets surge tracking robust global cues