Sensex loses 551 points on P-Note pain

Indian markets recorded their biggest one day percentage fall in nearly two months following concerns over tighter norms for participatory notes (P-Notes) and turmoil in the global markets, especially in China.

While the S&P BSE Sensex closed 550.93 points (1.96 per cent) lower at 27561.38, the CNX Nifty closed 160.55 (1.88 per cent) lower at 8361.

“Globally, economic data arising out of China indicated slower economic growth. Shanghai Composite Index fell  over 8 per cent, the biggest one-day drop in more than 8 years. This followed  weekend sell-off on the US markets and prevailing weak sentiment spread across  Asia and Europe,” said Future Generali Life Insurance Chief Investment Officer Nirakar Pradhan.

“Domestically, Indian Parliament didn’t function for fifth consecutive day casting shadow over passing of GST Bill during Monsoon session. Moreover, recommendations of SIT Panel appointed by Supreme Court indicated stricter norms for investment via Participatory Notes (P-Notes).

“However, we are positive on the Indian economy and markets over medium to long term and consider any sharp correction in markets as buying opportunity,” said Pradhan
Tata Steel led the list of losers on the Nifty by ending down 5.6 per cent at Rs 250.20.