The BSE Sensex closed at its lowest level in 19 months on Monday as worries about Chinese equities continued to haunt investors.
The Sensex ended 0.44 percent lower to mark its lowest close since June 4, 2014.The Nifty ended 0.49 percent lower.
China kept its currency yuan in a stable band for a second straight session on Monday, but its stock markets tumbled again as doubts persisted over its policy intent. The Shanghai Composite Index and the CSI300 index ended down more than 5 percent.
Recent steps by China’s authorities have fueled concerns in global markets about Beijing’s ability to maintain its grip on economic policy, even as the country is seen heading to post its slowest growth in 25 years.
World stock fall
World stocks fell to 2-1/2 year lows on Monday. Chinese stocks continued to be beaten down, bringing Asia to four-year lows and pulling down oil and commodity markets.
Europe’s main stocks saw a more steady start to the week but investors were still shaky after a torrid session in Asia as doubts continued to mount about Beijing’s ability to manage the world’s second-biggest economy.