China mar­kets drag Sen­sex down, again

Hindustan Times ST (Mumbai) - HT Navi Mumbai Live - - FRONT PAGE - HT Cor­re­spon­dent ht­metro@hin­dus­tan­

MUM­BAI: The Bom­bay Stock Ex­change saw Rs245,000 crore in in­vestor wealth wiped out on Thurs­day in the sharpest fall in 19 months as the devaluation of the yuan by China, the world’s sec­ond largest econ­omy, sparked fears of a global slow­down.

The devaluation — com­ing soon af­ter the Jan­uary 4 con­trac­tion in man­u­fac­tur­ing, which ac­counts for more than a third of China’s GDP — spooked in­vestors across the globe into sell­ing their hold­ings and shift­ing to safer havens such as the dol­lar and gold, wip­ing off $2.5 tril­lion from global eq­ui­ties.

The Sen­sex hit an in­tra-day low of 24,825.70 — the low­est since June 5, 2014 — be­fore clos­ing at 24,851.83, down 554.50 points or 2.2%. The broader NSE Nifty 50 ended at 7,568.30, down 172.70 points or 2.2%. The gov­ern­ment moved in to soothe frayed nerves. “Volatil­ity is the new nor­mal in the global econ­omy. In­dia has the in­her­ent re­silience to deal with emerg­ing chal­lenges. The gov­ern­ment is watch­ful,” eco­nomic af­fairs sec­re­tary Shak­tikanta Das said in a tweet.

Late in the evening, China sus­pended a new cir­cuit breaker rule, which an­a­lysts said was partly re­spon­si­ble for the cur­rent volatil­ity in mar­kets.



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