Sensex plunges 500 points on China stock crash, P-note debate

Markets traded in the red on Monday as the Sensex plunged 550.93 points to close at 27,561.38 and Nifty slumped 160.55 points to 8,362 on the back of weak global cues and P-note concerns.

Shares of Reliance Industries fell by over 1 per cent on profit-taking amid an overall weak broader market even as the company reported highest quarterly profit in seven-and-a-half years on strong refining and petrochemical margins.

On Friday, RIL had reported a standalone net profit of Rs 6,318 crore or Rs 19.5 per share in April-June quarter, which was 11.8 per cent higher than Rs 5,649 crore or Rs 17.5 a share in the same period a year ago.

Power Finance Corporation FPO was fully subscribed with the stock down 0.56 per cent at Rs 258.

The BSE Metal index was the top loser down 2.3 per cent followed by Bankex, Realty, Auto, Oil and Gas among others.

Metal shares extended losses tracking sharp fall in global commodity prices and fears that demand from China, the world's largest consumer, would continue to remain muted. Tata Steel, Hindalco and Vedanta ended down 3-5 per cent each.

The broader markets also witnessed profit taking with the BSE Mid-cap down 1.4 per cent and Small-cap index ended down 1.1 per cent.

Shares of ICICI Bank, L&T, Axis Bank, Tata Motors, Bharti Airtel, ONGC, Bharti Airtel, Tata Steel, Hindalco, Hero Motocorp and Vedanta plunged 2.5-5 per cent.

Tata Motors dipped over 3 per cent its lowest level since March 2014 on the BSE, on concerns about a slowdown in JLR car sales from its subsidiary in China.

Rajesh Exports gained 2 per cent after the company announced its acquisition of Valcambi, the world's largest gold refiner.

European stock markets opened lower after a sell-off in Asian shares, as traders await the opening of a key meeting of the US Federal Reserve's rate-setting committee.

China stocks plunged more than 8 per cent, their biggest one-day drop in more than eight years, as a government-triggered rebound petered out amid profit-taking, concerns over economic health and fears of an end to Beijing's inclination toward looser monetary policies.

The traders were cautious over reports on Sebi likely to review participatory notes norms. A government panel on black money has asked Sebi to obtain 'beneficial ownership' details for such instruments, as also for monitoring any unusual rise in stock prices, according to media reports.

Earlier, a crackdown on P-notes had taken place in 2007. P-notes at that time accounted for over 50 per cent of total foreign holdings. The result: There was a drop of around 10 per cent within minutes of the market opening for the first time after announcement of the change in norms.

Trading had to be halted for an hour. Both P Chidambaram, then finance minister, and M Damodaran, then Sebi chairman, had to make statements to calm the markets. The proposal that resulted in the fall did lead to certain curbs. These curbs, however, barely lasted a year.