Sensex falls 330 points on Moody's India outlook downgrade, rupee tumbles

Market players said Moody's outlook underscored some of the marco concerns

The benchmark Sensex on Friday fell 330 points after rating agency Moody’s revised India’s credit rating outlook citing growth concerns. Overseas flows and gains in ICICI Bank after MSCI rejig helped mitigate the fall. 

Moody’s economic assessment fuelled fresh concerns around the growth outlook and its impact on corporate earnings. The rating agency lowered the outlook to negative from stable, saying the economic growth could remain materially lower than in the past. It said the government could face significant constraints in maintaining the fiscal deficit and preventing the rising debt burden. 

Sensex ended the session at 40,323.61, down 330 points, or 0.81