The apex court's ruling will also have significant repercussions for India's banking sector as well as the country's broader economic outlook, it added.
Fitch said it believes that the government could allow a one-off restructuring of real-estate loans -- given the sector's severe challenges and the rising risk of defaults.
The rating agency said that a slowing economy could exacerbate asset-quality tension for a sector grappling with weak recoveries and ageing provisions.
According to Fitch Ratings, global car sales are likely to decline by around 3.1 million units (m) in 2019 as a whole, a larger decline than in 2008.
The report also flagged concern over high debt which allows only limited room for the government to ease fiscal policy.
This is its biggest single session fall since August 24, 2015, when it had lost 1,624.51 points.
The new entrant in the telecom industry, Reliance Jio, is expected to shift its approach from a hunter to a farmer by 2018, said Nitin Soni, Director at Fitch Ratings.