As another China led selloff gripped global markets, Indian stocks witnessed a steep slide. The Sensex lost 554.20 points or 2.18% at 24,851.83, as per the provisional closing data. The 50-unit Nifty 50 index fell 171.70 points or 2.22% at 7,569.30, as per the provisional closing data. The Sensex provisionally settled below the psychological 25,000 level. Stocks from metal and mining sector, oil exploration and production firms and public sector banks led losses for key benchmark indices. A fresh rout in Chinese stocks pulled global markets sharply lower. Trading was halted in mainland China after China's central bank continued to fix the onshore yuan's value lower to the US dollar.
The Sensex hit its lowest level in more than 19 months when it tanked 580.63 points or 2.28% at the day's low of 24,825.70 at the fag end of the trading session. The barometer index fell 175.98 points or 0.69% at the day's high of 25,230.35 at the onset of the trading session. The Nifty hit its lowest level in more than 3 weeks when it fell 184.40 points or 2.38% at the day's low of 7,556.60 at the fag end of the trading session. The index lost 66.05 points or 0.85% at the day's high of 7,674.95 at the onset of the trading session.
Trading in mainland China was suspended for the rest of the day after the CSI 300 index tumbled more than 7% in early trade, triggering the market's circuit breaker for a second time this week. China's central bank again surprised markets by setting onshore yuan's value lower to the US dollar, deepening concerns about the economy and sending the domestic stock markets tumbling. The People's Bank of China set the daily yuan reference-exchange rate against the US dollar 0.5% weaker compared with the previous day's closing level, marking the largest adjustment toward yuan weakness since the currency devaluation on 13 August 2015.
European stock markets moved sharply lower on the back of more turbulence in China, where markets were halted for trade after significant losses. US stock futures slumped, indicating a downbeat open on Wall Street as another trading halt in China and sliding oil prices fueled heavy selling. Trading in US index futures indicated that the Dow Jones Industrial Average could tumble 391.50 points at the opening bell. US stocks closed sharply lower yesterday, 6 January 2015, pressured by continued concerns about global economic growth, declining oil prices and increased geopolitical tensions.
Closer home, the broad market depicted weakness. There were more than three losers against every gainer on BSE. 2,194 shares declined and 688 shares rose. A total of 97 shares were unchanged. The BSE Mid-Cap index was provisionally off 2.61%. The BSE Small-Cap index was provisionally off 2.87%. The decline in both these indices was higher than Sensex's decline in percentage terms. All the nineteen sectoral indices on BSE were in the red.
The total turnover on BSE amounted to Rs 3582 crore, lower than turnover of Rs 4098.78 crore registered during the previous trading session.
Also Read
Metal and mining stocks edged lower on concerns over China's economic growth. Vedanta (down 8.89%), Jindal Steel & Power (down 10.44%), Tata Steel (down 6.52%), Hindalco Industries (down 4.47%), Steel Authority of India (down 7.5%), Hindustan Zinc (down 4.52%), National Aluminium Company (down 4.15%), JSW Steel (down 2.99%) and NMDC (down 2.65%) declined. China is the world's largest consumer of steel, copper and aluminum.
Meanwhile, the High Grade Copper for March 2016 delivery was currently down 2.73% at $2.031 per pound on the COMEX.
Shares of oil exploration and production (E&P) companies edged lower as global crude oil prices fell sharply. Cairn India (down 7.6%), Oil India (down 3.31%), ONGC (down 4.61%) and Reliance Industries (down 1.83%) declined. Lower crude oil prices would result in lower realizations from crude sales for oil exploration firms.
Shares of state-run oil marketing companies (PSU OMCs) also declined. BPCL (down 3.45%), HPCL (down 2.85%) and Indian Oil Corporation (down 2.1%) edged lower.
In the global commodities markets, crude oil prices fell sharply as rising volatility in the Chinese stock market and further weakness in the Chinese yuan triggered concerns crude demand will be more depressed amid a growing global surplus. Brent for February settlement was currently off $1.04 a barrel at $33.19 a barrel. The contract had lost $2.19 a barrel or 6.01% to settle at $34.23 a barrel during the previous trading session.
Concerns about Chinese demand sent shares of Tata Motors tumbling. The stock fell 6.03% at Rs 343.65. The stock hit a high of Rs 359.85 and a low of Rs 338.40 in intraday trade. China is a key market for Tata Motors' British luxury car unit Jaguar Land Rover (JLR).
Powered by Capital Market - Live News