Sensex ends 192 points lower on weak Chinese PMI data

The benchmark Nifty struggled to pass 5250 level on Monday due to negative global cues, which were worried about Chinese growth. The sell-off across all sectors barring FMCG dragged the Sensex down by 192 points.

China's purchasing manager's index fell to 52.1 in June from 53.9 in May, which was slow in pace for the second consecutive month. Asian markets as well as commodities declined post this news.

However, "The moderation in the manufacturing PMI implies slower sequential growth in China's manufacturing sector, partly due to the tightening measures taking effect," said Qu Hongbin, chief economist or China at HSBC, referring to government steps to cool the property market and curb bank lending.

Shanghai, Jakarta and Taiwan Weighted were down more than one percent. Nikkei slipped 2%. Hang Seng, Straits Times and Kospi lost 0.5-0.7%. Crude oil was trading at USD 74.9 a barrel, down 1.2%. Even MCX copper contract fell 1.6% to Rs 300 per kg.

European markets has also taken beating but they have managed to recover a bit; CAC was down 1.5%, DAX down 0.66% and FTSE fell 0.9%. Even the US markets went down one percent on Wednesday, as ADP Employment suggested that private payrolls for June increased 13,000 against expected 61,000; official government report will be disclosed on Friday. Dow Jones and Nasdaq futures were marginally in red.
 
The 30-share BSE Sensex closed at 17,509.33, down 191.57 points or 1.08% and the 50-share NSE Nifty declined 61.10 points or 1.15% to settle at 5,251.40. However, the broader indices remained quiet after looking at market breadth. About 1543 shares advanced while 1588 shares declined on BSE. Nearly 193 shares remained unchanged.

Global cues:

Asian markets were trading lower. Nikkei was down 2% and Kospi down 1.6%. Hang Seng, Jakarta, Straits Times and Taiwan fell 0.5-0.7%. Shanghai was down just 0.1%.