The Bombay Stock Exchange’s Sensex was down over 100 points in early morning trade on Tuesday in response to the US Government reportedly ordering a partial shutdown of operations of non-key institutions at midnight Monday after Congressional Republicans stubbornly demanded changes in the nation's health care law as the price for essential federal funding.
The Sensex was down 102 points at 19,277.17 while Nifty was off 32 points at 5,703.25. The Indian rupee opened with a marginal gain of 11 paise at 62.49 per dollar versus 62.60 yesterday.
Meanwhile, in a statement, Sylvia Burwell, director of the White House Office of Management and Budget, appealed to the US Congress to quickly pass a continuing resolution to provide a short-term bridge that ensures sufficient time to pass a budget for the remainder of the fiscal year.
She also sought restoration of critical public services and programs that will be impacted by a lapse in appropriations. "Agencies should now execute plans for an orderly shutdown due to the absence of appropriations," said Burwell in a memo.
India's current account deficit grew less than expected in the June quarter and is tipped to ease in coming months as a pick-up in exports and lower gold imports improve the trade balance, offering relief to the battered rupee.