India's stock markets slumped more than 3 percent in early morning trade on Monday, the biggest plunge in four years, as a rout in Chinese equities sparked widespread unrest in global financial markets.
The BSE Sensex fell 4 percent to 26,277.03 at 10:31 a.m. in Mumbai. That compared with a 4.4 percent fall in the MSCI Asia-Pacific index of shares excluding Japan. The rupee plunged 0.9 percent to fall below the Rs 66 level against the dollar for the first time in almost two years in opening trade today on sustained capital outflows even as the US currency weakened overseas.
“We are suffering from the global selloff as well as from the government not offering a new solution or support,” said Ajay Srivastava, managing director of Dimensions Consulting Pvt., in an interview with Bloomberg TV India. Reserve bank governor Raghuram Rajan said in a conference today that central banks should avoid giving “booster shots” to stock markets.
Bourses from Japan to Malaysia were hit hard as Chinese stocks plummeted immediately after the open on Monday. That overrode positive sentiment over new rules implemented over the weekend in China that allow pension funds to invest in the stock market. “The news on pension funds over the weekend was positive, but not having the expected required-reserve ratio cut or any other larger measure seems to have disappointed investors,” said Gerry Alfonso, a Shanghai-based trader at Shenwan Hongyuan Group Co.
There was speculation that China will cut bank reserve ratios but that did not happen, fuelling a larger fall in stocks.
"The market is in a downtrend. There's no good news, stocks are still expensive, and there's no fresh money coming in," said Qi Yifeng, analyst at consultancy CEBM.
The MSCI Asia Pacific index was down to a two-year low after U.S. index futures showed the commodities slump might worsen. China's stocks plunged the most since 2007, on heightened concerns that the slowdown in the world's second-largest economy is worse than expected.
Among today's losers was Jaguar Land Rover, Axis Bank and State Bank of India, which dragged down other banking stocks as well. Vedanta Ltd., India's largest copper producer, slumped to a six-year low.
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The BSE Sensex fell 4 percent to 26,277.03 at 10:31 a.m. in Mumbai. That compared with a 4.4 percent fall in the MSCI Asia-Pacific index of shares excluding Japan. The rupee plunged 0.9 percent to fall below the Rs 66 level against the dollar for the first time in almost two years in opening trade today on sustained capital outflows even as the US currency weakened overseas.
“We are suffering from the global selloff as well as from the government not offering a new solution or support,” said Ajay Srivastava, managing director of Dimensions Consulting Pvt., in an interview with Bloomberg TV India. Reserve bank governor Raghuram Rajan said in a conference today that central banks should avoid giving “booster shots” to stock markets.
Bourses from Japan to Malaysia were hit hard as Chinese stocks plummeted immediately after the open on Monday. That overrode positive sentiment over new rules implemented over the weekend in China that allow pension funds to invest in the stock market. “The news on pension funds over the weekend was positive, but not having the expected required-reserve ratio cut or any other larger measure seems to have disappointed investors,” said Gerry Alfonso, a Shanghai-based trader at Shenwan Hongyuan Group Co.
There was speculation that China will cut bank reserve ratios but that did not happen, fuelling a larger fall in stocks.
"The market is in a downtrend. There's no good news, stocks are still expensive, and there's no fresh money coming in," said Qi Yifeng, analyst at consultancy CEBM.
The MSCI Asia Pacific index was down to a two-year low after U.S. index futures showed the commodities slump might worsen. China's stocks plunged the most since 2007, on heightened concerns that the slowdown in the world's second-largest economy is worse than expected.
Among today's losers was Jaguar Land Rover, Axis Bank and State Bank of India, which dragged down other banking stocks as well. Vedanta Ltd., India's largest copper producer, slumped to a six-year low.
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