After a relief rally on Tuesday, the Indian markets continued its downward journey with both the benchmark indices ending deep in the red, following selling by foreign institutional investors. While the S&P BSE Sensex slumped 317.72 points (1.22 per cent) to end at 25,714.66, the CNX Nifty slumped 88.85 points (1.13 per cent) to close at 7,791.85.
“Concern over China’s economy continues to impact the investors’ confidence across the globe. Due to continued decrease in FIIs confidence, flows to India continue to be weak. Mutual funds are adding their exposure viewing this chaos, as an opportunity which is led by global factors,” Geojit BNP Paribas Financial Services Head- Fundamental Research Vinod Nair said.
“Market shed all of Tuesday’s gains and extend losses. Even rate cut by China central bank couldn’t improve the sentiment of the investors across the globe. Continued fall in commodity prices and sell-off by the worried investors triggered the fall in equities worldwide,” Hem Securities director Gaurav Jain said.
Shanghai shares bleed
Shanghai stocks closed down 1.27 per cent in volatile trading on Wednesday, extending days of falls despite a central bank interest rate cut aimed at boosting the flagging economy and slumping shares, dealers said.
China's benchmark Shanghai Composite Index fell 37.68 points to 2,927.29 on turnover of 461.8 billion yuan ($72.1 billion). It surged up to 4.29 per cent and was down as much as 3.85 per cent during the day.
The Shenzhen Composite Index, which tracks stocks on China's second exchange, dropped 3.05 percent, or 53.31 points, to 1,695.76 on turnover of 432.2 billion yuan.