Sensex tumbles on S038;P outlook

Similarly,the broad-based National Stock Exchange index Nifty lost 62 points to 5,160.65.

Selling pressure emerged as Samp;P cut the country rating outlook to negative from stable. It also warned of a downgrade in two years if there is no improvement in the fiscal situation and the political climate continues to worsen.

The lowering of outlook from stable BBB to negative BBB- is expected to make external commercial borrowings expensive for Indian Inc.

All the sectoral indices fell up to 1.77 per cent lead by realty,consumer durable and information technologies.