NEW DELHI: India's key market indices had a precipitous fall on the back of a sharp decline in China's stock markets, weak Q1 results by companies and worries that the government may impose restriction on the use of participatory notes, a popular mode of investment for foreign investors.
Shanghai stocks slumped 8.48 percent on Monday, defying government efforts to prop up the market on worries that the world's second largest economy is headed for a sharp slowdown. Profit at China's industrial firms dropped 0.3 per cent in June from a year earlier, the National Bureau of Statistics (NBS) said on Monday.
That reversed a 0.6 per cent rise in May and 2.6 per cent gain in April, the first month since September 2014 in which industrial profits were higher than a year earlier.
A Supreme Court-appointed Special Investigation Team (SIT), entrusted with the task of suggesting measures to curb black money, recommended that Sebi should do more to identify real owners of P-notes and restrict their transfer.
While the SIT's recommendations, released after trading hours on Friday, have triggered unease at Dalal Street, some brokers and fund managers said stocks are unlikely to react sharply, said an ET report.
The positions held through P-notes are worth Rs 2,75,436 crore, or 11.5 per cent of the assets under custody of foreign portfolio investors, which is Rs 23,86,457 crore, added the report.
Metal stocks were among the worst losers. Tata Steel Ltd shares were down 5.22% on BSE. and its stock was trading at its lowest level in 52 weeks.
Among other metal firms, shares of Steel Authority of India Ltd (SAIL) fell 2.41%, NMDC Ltd was down 2.68%, Vedanta Ltd 3.13% and Hindalco Industries Ltd 4.08%.
Shares of Tata Motors Ltd hit a 16-month low, losing over 13% in five of the last six trading sessions, on the back of higher volumes. The stock fell as much as 4.33% and touched a low of Rs.373.05, a level last seen on 21 March 2014.
All sectoral indices were trading lower. The BSE capital goods was the top sectoral loser, down 2.70%, followed by BSE power, which was down 2.28%.
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Shanghai stocks slumped 8.48 percent on Monday, defying government efforts to prop up the market on worries that the world's second largest economy is headed for a sharp slowdown. Profit at China's industrial firms dropped 0.3 per cent in June from a year earlier, the National Bureau of Statistics (NBS) said on Monday.
That reversed a 0.6 per cent rise in May and 2.6 per cent gain in April, the first month since September 2014 in which industrial profits were higher than a year earlier.
A Supreme Court-appointed Special Investigation Team (SIT), entrusted with the task of suggesting measures to curb black money, recommended that Sebi should do more to identify real owners of P-notes and restrict their transfer.
While the SIT's recommendations, released after trading hours on Friday, have triggered unease at Dalal Street, some brokers and fund managers said stocks are unlikely to react sharply, said an ET report.
The positions held through P-notes are worth Rs 2,75,436 crore, or 11.5 per cent of the assets under custody of foreign portfolio investors, which is Rs 23,86,457 crore, added the report.
Metal stocks were among the worst losers. Tata Steel Ltd shares were down 5.22% on BSE. and its stock was trading at its lowest level in 52 weeks.
Among other metal firms, shares of Steel Authority of India Ltd (SAIL) fell 2.41%, NMDC Ltd was down 2.68%, Vedanta Ltd 3.13% and Hindalco Industries Ltd 4.08%.
Shares of Tata Motors Ltd hit a 16-month low, losing over 13% in five of the last six trading sessions, on the back of higher volumes. The stock fell as much as 4.33% and touched a low of Rs.373.05, a level last seen on 21 March 2014.
All sectoral indices were trading lower. The BSE capital goods was the top sectoral loser, down 2.70%, followed by BSE power, which was down 2.28%.
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