Portugals was reduced by two steps to A- from A+. This is the first time a euro member lost its investment grade rating since the currency was introduced in 1999.
The news led to the a surged in the credit-default swaps on European sovereign debt. Greek CDS shot up 111 bps to 821 on Apr 27.
The 30-share BSE Sensex closed at 17380, down 310 points and the Nifty fell 92 points to settle at 5215 on the back of European concerns.
The US markets slipped 2pc. Asian markets declined 0.8 to 2.5cp today while only Shanghai lost just 0.26pc. European markets already factored in this news, as they tumbled 2.6 to 4pc on Apr 27.
Sensex slips 250pts on weak European cues
Sensex was southbound as it witnessed selling pressure owing to weak European cues. The index declined around 250 points again and inched towards the day's low, especially post European markets opening, which dipped over 1pc.
At 1:41 pm, Sensex was trading at 17434, down 259 points and the Nifty was at 5227, down 81 point.
Jaiprakash Associates trading at Rs 145.80, down 4.71pc and Hindalco trading at Rs 177.35, down 3.35pc were the top losers.
Reliance Industries was at Rs 1,026, down 3.31pc; DLF was at Rs 307.25, down 3.12pc; Tata Steel was at Rs 629.50, down 2.77pc; SAIL was at Rs 218.15, down 4.13pc and Unitech was at Rs 80, down 3.38pc.
In the midcap space, Blue Dart, Motilal Oswal, Hindustan National Glass, Exide Industries and Indraprastha Gas gained 2 to 4.6pc. However, Indiabulls Real, Bajaj Holdings, National Fertiliser, Jain Irrigation and TVS Motor slipped 4 to 7.5pc.
In the smallcap space, ITD Cementation moved up 14pc. Panoramic Universal, S Kumars Nationwide, Shree Ram Urban and LGS Global surged 5 to 7pc, while HBL Power, Jindal Drilling, NESCO, Vipul and ARSS Infra dipped 5pc.
Sensex down 156 pts; SBI, Reliance Comm up
Greecian woes continued to affect the market as Sensex was southbound.
At 10:49 am, Sensex was trading at 17533, down 156 points and the Nifty was at 5259, down 49 points.
Selling in Oil & gas exploration, technology, metal, realty, capital goods, power and auto companies' shares put the markets under pressure. The other losers in the early trade were ICICI Bank and HDFC.
The only gainers were SBI, ITC, Sun Pharma, BPCL, Reliance Communications, ACC and Cipla.
Tech Mahindra, the most active shares on the exchanges declined 3pc, after AT&T sold 7pc stake in the company via block deal to LIC. Post sell, AT&T stock sliied 1%.
11: 45 AM
Nifty opens 50pts down; RIL, Sterlite slip
Benchmark Nifty plunges 50 pts dowm owing to weak global cues, due to the downgrade ratings of Greece and Portugal by S&P. The Greece ratings has been reduce to "junk" by S&P and the Portugal's debt has been lowered to notches to A- on Tuesday, Apr 27.
Selling was experienced across all sectors. The shares of oil & gas exploration, metal and technology companies were under pressure.
At 9:02 am, Nifty was at 5258, down 50 points and Sensex was trading at 17520, down 171 points.
Among the fronliners the losing side were Sterlite, Hindalco, Tata Steel, SAIL, DLF, Unitech, Cairn, Jaiprakash Associates, M&M, Maruti, Axis Bank, ICICI Bank and Reliance Industries.
The only gainers in the opening trade were ITC, Idea Cellular and Ambuja Cements.
Midcap & Smallcap space
Tech Mahindra and Petronet LNG tanked 4pc. TVS Motor slipped 2pc.
GMR Infra, SREI Infra and Lanco Infra lost 2.5pc.
Spice Moblies sustained its gains since long time, today surged 4pc.
Asian markets were also impacted. Nikkei dipped 2.5pc. Hang Seng, Straits Times, Kospi, Jakarta and Taiwan slipped 1 to 1.5pc. Shanghai lost just 0.2pc.