China, India stocks see another day of turmoil

Another slump in the equity market of China, the world’s No. 2 economy, stoked concerns about sluggish global growth [Xinhua]

Chinese and Indian stocks faltered on Wednesday as investors were not reassured by fresh rate cuts announced by China.

The benchmark Shanghai Composite Index plunged more than 3 per cent in the morning trading session on Wednesday.

After a turbulent morning, China’s CSI300 index was up 1.7 per cent by noon, while the Shanghai Composite Index was up 0.8 per cent.

Following the benchmark measure closing with a 7.6 per cent drop on Tuesday, the Chinese Central Bank announced the fifth interest-rate cut since November.

Investors cashed out in India as well on Wednesday with the benchmark BSE (Bombay Stock Exchange) index down 127.84 points or 0.49 per cent at 25,904.54 at 9.40 a.m. local time after falling 1.2 per cent in early trade.

The Sensex tanked 312.59 points or 1.2 per cent to 25,719.79 in early trade on Wednesday due to profit-booking by investors.

Brokers said investors booked profit after yesterday’s gains pushing the indices down.

 

TBP and Agencies