Market will react to cut in ratings outlook on India's sovereign debt rating to negative from stable by Fitch Ratings announced after market hours on Monday. Most Asian markets were trading lower on Tuesday amid worries over the worsening euro zone debt crisis.

Rating firm Fitch on Monday lowered the rating outlook of seven public sector companies including NTPC, Sail, GAIL (India), Indian Oil Corporation, REC, Power Finance Corporation of India and NHPC. However, Fitch said there is no immediate impact on Reliance Industries' Issuer Default Ratings (IDRs) following India's credit outlook revision.

Key benchmark indices tumbled on Monday, 18 June 2012, as the market sentiment was hit adversely after the Reserve Bank of India (RBI) kept its key policy rate viz. the repo rate unchanged at 8% after a mid-quarter monetary policy review, contrary to market expectations of a 25 basis points reduction. The BSE Sensex lost 244 points or 1.44% to settle at 16,705.83, its lowest closing level since 14 June 2012.

Foreign institutional investors (FIIs) bought shares worth a net Rs 412.41 crore on Monday, 18 June 2012, as per provisional figures.

Most Asian markets declined on Tuesday as rising Spanish and Italian bond yields suggested that European leaders still have plenty to do to contain the worsening euro zone debt crisis. Key benchmark indices in Japan, China, Taiwan, South Korea and Hong Kong were down by 0.17% to 0.37%. Key benchmark indices in Indonesia and Singapore rose 0.40% and 0.20% respectively.

US markets were mixed on Monday amid fears over worsening Europe's debt crisis. The Dow Jones Industrial Average fell 25.28 points, or 0.20%, at 12,741.89. The Standard & Poor's 500 index rose 1.94 points, or 0.14%, at 1,344.78. The Nasdaq Composite index rose 22.53 points, or 0.78%, at 2,895.33.