After surging nearly 175 points, the stock markets erased the gains and closed 51 points lower, breaking a five-day uptrend, after S&P warned India could become the first BRIC nation to lose investment-grade rating.

The BSE benchmark index, which had gained 754 points in the last five straight sessions, opened higher in the morning and advanced 174.94 points to touch a day’s high of 16,893.81.

However, an S&P report that cited slowing GDP growth and political roadblocks to economic policy-making as some worrying factors came up as a dampener and pulled down the index from the day’s high level to 16,668.01, lower by 50.86 points from its previous close.

Bluechips RIL, SBI, ICICI Bank, L&T and Maruti were among the 18 counters that declined in the 30-share index.

Brokers said a better trend in global stock markets and the Finance Minister’s assurance of recovery in GDP growth in next fiscal saved the market from a major fall.

The mood also became cautious ahead of the April IIP data and May inflation figures slated to come out later this week that would give direction to markets. The RBI meet on June 18 to decide on interest rates will also be an influencing factor.

“Markets started the week on a strong footing with a gap up opening. However, the statement from S&P impacted sentiments negatively. Consequently, equity markets saw selling pressure and rupee weakened,” said Mr Milan Bavishi, Head Research, Inventure Growth & Securities.

The 50—share Nifty lost 14.25 points, or 0.28 per cent to 5,054.10, after touching the day’s high of 5,124.45.

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