Markets Continue Downtrend, Major Players Suffer Big Losses

The Indian stock market on Monday opened with sharp falls following weak China markets. The Nifty plunged below 7500 for first time since July 15, 2014.The 50-share index is at 7598, down 89 points or 1.15 percent while the Sensex is down 326.29 points or 1.3 percent at 24608.04. Hindalco, Tata Steel, Tata Motors, L&T and Adani Ports are major losers in the Sensex.

Markets in Asia traded lower as worries over China and low commodity prices continue to hit investor sentiments. The Chinese markets opened lower with the Shanghai composite down 2.51 percent after losing all of its 2015 gains last week, falling by 9.97 percent in just five days. The Shenzhen composite was down 3.28 percent. Chinese markets were shut down twice last week by circuit breakers, a regulatory tool used to calm down volatile markets. The circuit breakers were designed to trigger a 15-minute trading halt if the CSI 300 index falls 5 percent. If that index falls 7 percent, trade would be halted for the rest of the session. By the end of the week, China suspended its circuit breakers, but investors remained wary over the country's ability to handle financial turmoil.
Meanwhile, the rupee continued its decline this week with losses in early trade. It opened lower by 27 paise at 66.90 per dollar as against 66.63 Friday.