Mumbai: Key indices closed lower after credit rating agency Moody's Investors Service downgraded India’s rating outlook to negative from stable, citing persistent growth concerns, increasing debt, and fiscal slippages.

Following its downgrade in India’s rating outlook, Moody’s also cut its outlook on some index heavyweights to negative. Those include State Bank of India, HDFC Bank, Tata Consultancy Services, Infosys, Bharat Petroleum Corporation Ltd, NTPC, and GAIL.

The Sensex erased all gains to close 330.13 points or 0.8% lower at 40,323.61. The Nifty shed 103.90 points or 0.86% to close at 11,908.15.

While the market breath was negative, Raymond surged nearly 20% after the company announced the demerger of its core lifestyle business into a separate entity that will be listed through mirror shareholding structure. It was one of the top gainers today.

Indraprastha Gas surged 6.4% after the company reported two-fold year-on-year jump in its consolidated net profit to 415.82 crore on the back of a nearly 20% rise in its total income to 1773.84 crore for the September quarter.

Realty major DLF jumped 5.6% after the real estate company reported a 140% rise in consolidated net profit to 414.72 crore. Also, Morgan Stanley Capital International (MSCI) has incorporated DLF in its Global Standard Index.

Among sectoral indices, BSE FMCG was the biggest loser, which fell 1.80%, followed by BSE Metals down 1.74% and BSE Oil & Gas down 1.72%. BSE Bankex was the lone gainer, up 0.64%.

Shares of GAIL fell 3.9% to 127.05 on weak September quarter earnings. Net profit fell 34% year-on-year to 1,167.6 crore from 1,788.98 crore a year-ago.