NAVs decline as S&P downgrade warning hits market

Equity Mutual Funds delivered dismal performance as markets plummeted by over 0.9 per cent on Wednesday in the wake of downgrade warning by the rating agency Standard & Poor's and profit booking. The Large cap and broader indices Small & Mid cap were down by over 1.5 per cent. None of the funds in any Equity category including Sector funds could manage to register positive returns.

Amidst volatile market, even the funds belonging to Hybrid category couldn't withhold market pressure and were seen in red.

The warning to S&P's downgrade, weak global economic cues, and ongoing Eurozone crisis are cited to be the prime reasons for market downfall. The Sensex dropped 162.26 points to close at 18,631.10, and Nifty fell 52.45 points to 5,652.15.

On the debt space, Long term Gilt funds declined ahead of IIP data today and weekly bond auction. Meanwhile the other Long and Short term funds delivered decent performance, however, the debt market is expected to be cautious on account of higher crude prices and uncertainty over rate cut by RBI.

Check out all mutual fund gainers & losers

Here is the day's performance and the gainers and losers across categories.

Equity funds: Top gainers

*  No Gainers

Equity funds: Top losers

*  Escorts Infrastructure Fund (G) down 2.44%

*  Escorts Leading Sectors Fund (G) down 2.2%

*  HSBC Midcap Equity Fund (G) down 2.06%

Tax saving funds: Top gainers

*  No Gainers

Tax saving funds: Top losers

*  SBI TAX Advantage Fund - Series II (G) down 1.4%

*  Tata Infrastructure Tax Saving Fund (G) down 1.37%

*  Reliance Tax Saver (ELSS) Fund (G) down 1.31%

Sector funds: Top gainers

*  No Gainers

Sector funds: Top losers

*  Reliance Media & Entertainment Fund (G) down 1.85%

*  Sahara Power & Natural Resources Fund (G) down 1.75%

*  R* Shares Banking Exchange Traded Fund down 1.35%

Balanced funds: Top gainers

*  No Gainers

Balanced funds: Top losers

*  ICICI Prudential Balanced Fund (G) down 0.96%

*  Reliance Regular Savings Fund - Balanced Option (G) down 0.9%

*  Principal Retail Equity Saving Fund (G) down 0.83%

Debt funds: Top gainers

*  Axis Short Term Fund - Institutional Plan (G) up 0.07%

*  Baroda Pioneer Gilt Fund (G) up 0.04%

Debt funds: Top losers

*  SBI Dynamic Bond Fund (G) down 0.01%

*  Templeton India Govt Sec - Provident Fund (G) down 0.01%