S&P 500 index drops the most since June 20 - Nirmal Bang

U.S. stocks fell, with the S&P’s 500 Index dropping the most since June 20, as growing tension over possible military action in Syria overshadowed a report showing consumer confidence unexpectedly rose in Aug.

Asian stocks slumped, with regional benchmark index heading for lowest close in 2 months, on concern the U.S. will take military action against Syria for using chemical weapons.

The prospect of a war in the Middle East and the passage of the Food Security Bill pummelled stocks and drove the rupee to its steepest one-day fall. Harried investors, already worried over lower earnings and rising debt at some of the biggest companies, were forced to consider the impact on finances and interest rates of the govt's pre-election promise to provide cheap food to about 67% of country's 1.1 bn population. The rupee closed at an all-time low of 66.24 to the dollar, falling 3.07% from its previous close. RBI stayed away from the market, realising that it is part of a global selloff. Market is expected to open on a lower note and range-bound during the day.

Source : Equity Bulls

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