BUSINESS

Chinese mayhem: Sensex fifth largest loser with 7.5% plunge

Source:PTI
September 11, 2015 18:49 IST

While most global market indices witnessed an increase since the market crash on August 24, the Sensex was the only exception which continued to decline, though by a modest rate of 1 per cent.

The BSE Sensex is the fifth largest loser among its global peers witnessing a 7.5 per cent plunge ever since China devalued its currency yuan on August 11, says a report.

The highest slump was seen in Chinese market (18.6 per cent) followed by Japan (11.6 per cent), Hong Kong (11.1 per cent) and Turkey (9.9 per cent), during the period between August 11 to September 9, says latest findings by Care Ratings.

Interestingly, while most global market indices witnessed an increase since the market crash on August 24, the Sensex was the "only exception which continued to decline, though by a modest rate of 1 per cent", the report noted.

According to the report, the slump in the Sensex could be attributed to the close relationship which all indices share with each other under the force of globalisation.

"Similar trends may be expected to prevail as the Sensex closely tracks the movements in major stock indices," it said.

Global markets, including Indian, have been on a downward trend ever since the news of the slowdown in China took centre-stage.

China on August 11 devalued its tightly-controlled currency by 2 per cent, as the world's second-largest economy grappled with economic slowdown and dwindling exports.

As per the report, the sharpest market recoveries since August 24 to September 9 were witnessed in China, Korea and Indonesia. "...the markets do appear to have gotten over the shock. The rating firm found that," the report said.

Meanwhile, the Latin American markets declined less than the other Asian countries, the report said.

The two days--August 24 and 25--witnessed the nadir of almost all the stock markets after which there has been some semblance of a recovery though compared with the indices on August 11, the values are still lower, the report said. 

Source: PTI
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