India tumbles amid downgrade worry

|By:, SA News Editor

The Sensex broke a 3-day winning streak, tumbling 3.5% as the rupee fell as much as 2% amid worries India is set to be downgraded. An S&P report says the chances of an Indian downgraded are higher than those for Indonesia.

Goldman cuts its fiscal year GDP growth forecast to 4% from 6%, and now expects the rupee to fall as low as 72 to the dollar in the next 6 months. It takes just more than 67 rupees to buy a greenback at the moment.

EPI -3.4% premarket.

ICICI Bank (IBN) -3.5%, HDFC Bank (HDB) -3.8% premarket.

Equity ETFs: INDY, EPI, PIN, INP, INDA, INXX, SCIF, SCIN, INDL, SMIN.

Rupee: ICN, INR.