Sensex closes 109 points down as China jitters continue, Nifty settles above 7,560

The BSE Sensex pared some losses after falling over 300 points in the early trade on Monday and closed 109.29 points down at 24,825.04 following weak global cues. NSE Nifty settled 37.50 points down at 7,563.85.

In the 50-share index, Vedanta, Reliance Industries, Tata Motors, Grasim and Maruti Suzuki gained between 1.65 per cent and 4.90 per cent. On the other hand, Wipro, Mahindra & Mahindra, Adani Ports, Tech Mahindra and Dr Reddy’s Labs slid between 2.70 per cent and 3.50 per cent.

Traders were seen piling position in realty and auto stocks while selling was witnessed in healthcare, IT and TECK sector stocks. The BSE Realty and BSE Auto index gained 0.25 per cent and 0.10 per cent. The BSE Healthcare index and BSE IT index fell 1.37 per cent and 1.10 per cent, respectively.

Gaurav Jain, director, Hem Securities, said, “Indices opened in deep red tracking global markets but recovered in the second part of trading session on the back of recovery in European markets. Short covering, lower level buying and strengthening of rupee also helped the indices recoup the losses to some extent.”

Sentiments remained dampened since morning as markets made a gap-down start as investors remained on sidelines ahead of Q3 earning season which is due to start tomorrow with TCS and IndusInd Bank unveiling the numbers. Traders also remained concerned with a private report stating that consumer sentiments in India fell for the fourth consecutive month in December to the lowest on record, as consumers reported a further deterioration in their personal finances amid rising inflation. Also, as the Commerce and Industry Minister Nirmala Sitharaman has said the devaluation of the Chinese currency is a ‘worrying’ development which will make Indian exports expensive and widen the trade deficit with the neighbouring nation.

In scrip specific development, Sun TV Networks closed 3 per cent down after the former telecom minister Dayanidhi Maran, his brother and Sun Group chief Kalanithi Maran and four others were charge sheeted by the Enforcement Directorate in the Special 2G court in connection with a money laundering case lodged in the Aircel-Maxis deal.

Vakrangee rallied 1.74 per cent on the back of its announcement of a strategic tieup with Mahindra e-market for promoting and booking of automobile products through Vakrangee Kendras.

Asian equity markets ended in deep red on Monday after more weak data reignited concerns about China’s economy following a global stocks rout at the start of the year. Chinese shares ended down at their lowest since September, following data released over the weekend showed producer prices fell for a record 46th month and inflation remained muted at about half the government’s target for 2015 in December, stirring concerns over a slowing economy. China guided its yuan currency stronger for a second straight session, adding to market confusion over what the central bank is trying to achieve. Seoul shares fell sharply on foreign fund selling after oil prices came under fresh selling pressure and Samsung Electronics indicated it may be due for another profit drop in 2016. The Japanese market was closed in observance of Coming of Age Day

China’s Shanghai Composite Index and the CSI300 index ended down more than 5 per cent after a 10 per cent plunge last week that triggered a global sell-off of riskier assets.