Sensex dips 538 pts on China rout

This is the biggest ever fall in 3 months

Mirroring its Chinese and other Asian peers, Indian markets fell over two per cent on Monday, making it the biggest ever fall in over three months.

While the S&P BSE Sensex tanked 537.55 points (2.05 per cent) to close at 25,623.35, the Nifty 50 closed 171.90 points (2.16 per cent) lower at 7,791.30.

Market capitalisation of companies listed on the BSE also fell below the Rs 1 lakh crore mark, ending the day at Rs 99,38,322 crore.

“Markets ended the day sharply lower as concerns over growth rate in China and the geo-political situation in the Middle East spooked sentiments. The contraction in India’s December PMI manufacturing numbers also impacted sentiments,” Kotak Securities senior vice president and head of private client group research Dipen Shah said.

Under pressure

“The weak Chinese manufacturing data, regional currencies and tensions in the Middle East kept the Indian markets under pressure. Also, the economic data from the domestic front also added fire to the fall,” Geojit BNP Paribas Financial Services head — research Alex Mathews said.

China’s Shanghai Composite crashed 6.86 per cent on Monday triggering a trading halt on the bourse. Concerns over growth in the country as well as lifting of short selling ban, which will come into effect soon, were the main reasons for the fall, according to experts. Among other markets in the Asian region, Japan’s Nikkei, Hong Kong’s Hang Seng and Singapore’s Straits Times fell between one-four per cent.

Tata Motors led the list of losers on the Nifty 50 index, ending down over 6.41 per cent at Rs 376.15.

Other major losers included Idea (down 4.89 per cent to Rs 136.20), Bank of Baroda (down 4.72 per cent to Rs 151.55), Hindalco (down 4.59 per cent to Rs 81) and PNB (down four per cent to Rs 112.90).

Declines outnumbered advances nearly 2:1 on the NSE with 1,057 stocks declining and only 516 advancing. 34 scrips remained unchanged. Only three of the Nifty 50 scrips ended on a positive zone.

Tata Steel was the top gainer, closing up 0.62 per cent at Rs 259. The other gainers included Asian Paints (up 0.2 per cent to Rs 880.50) and HCL (up 0.13 per cent at Rs 846.95).