Sensex at 1-year low, as markets fall again

Indian stocks fell again on Wednesday to their lowest in a year despite the Chinese government’s new measures to assuage worries over the slowdown in the country    Stock Market Trading Tips 

The benchmark Sensex ended 318 points, or 1.2 per cent, lower at 25,714.66 — its lowest close since August 12, 2014.

The 50-share Nifty lost 88.8 points, or 1.1 per cent, to 7,791.85. Two-thirds of its components ended the day losing value. Commodity Trading Tips

Trading was marked by high volatility, with the August series derivatives contracts set to expire on Thursday.

The rupee, too, weakened slightly, ending at 66.14 compared to the previous day’s close of 66.1.

Global investor sentiment remained weak as the move of the People’s Bank of China to cut borrowing costs and reserve ratios failed to stem the decline in the stock market. China’s benchmark Shanghai Composite Index ended 1.3 per cent lower to 2,927.3.

Investors worldwide are yet to come to terms with the prospects of slowing growth in the world’s second-biggest economy and the biggest contributor to the global growth.

The India VIX index, a gauge of market fear, cooled off slightly. But it traded at an elevated level of 25.5, indicating uncertainty and high volatility  Stock Market Trading Tips 

“Expecting more from the index this year is optimistic. A time correction is already underway and we could see a sharper participation on the price front,” said Harendra Kumar, managing director — institutional equities, Elara Capital, in a note. “A more accommodative rate cycle and latent recovery in earnings would buoy return expectations next year, but that is the next year’s story.”