BENGALURU: It looks like the dragon had got a very bad cold, after its sneeze brought down the entire global market on Thursday. This has happened second time in a row as China halted trading and the People's Bank of China (PBOC) lowered the Yuan peg to the dollar by 0.51 to 6.5646 percent, according to indiatimes.com.

 China stock markets tumbled 7 percent in their opening session of the year 2016 as Yaun’s fall added more concerns about already stumbling economy. This eventually forced exchanges to suspend trade for the first time. The close down was triggered by an automatic early closure under the new system, after an initial 15 minute trading halt, failed to stem the declines.

This is the first contraction in two years as the manufacturing sector output dipped in December, as orders fell sharply and production saw a bit hit as rains battered Chennai which in turn laid pressure on RBI to keep rates low.

However, the major losers that dragged down sensex and nifty were Tata Motors, Bharti Airtel, Adani Ports, BHEL, Lupin, Axis Bank, Sun Pharma, Cipla, Hero MotorCorp, L&T, Coal India, M&M, Infosys and TCS.   

As far as the global market goes, European and Asian shares with currencies tumbled on Monday, first day of trading in 2016. After China factory activity contracted and its central bank guided the yuan lower, oil prices jumped as much as 3 percent on rising tensions in the Middle East.

Depreciation in Indian rupee also dampened the market sentiments. The rupee was at 61.52 per dollar at the time of equity markets closing as compared to 61.15 per dollar level on Friday.

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