Hang Seng lost 2.3 percent following slump on Wall Street last night while European markets like France's CAC, Germany's DAX and Britain's FTSE dropped nearly one percent post Asian rout and further fall in crude oil prices. Brent crude declined to fresh five-year low of 65.35 a barrel, before showing a recovery (around 15 hours IST) to 66.46 a barrel, up 27 cents.

 Back home, all sectoral indices closed in the red. BSE Auto, Bank, Capital Goods, FMCG, Metal and Oil & Gas indices were down 1-3 percent while the fall in Healthcare and IT (down 0.2 percent) was less compared to other indices. Sesa Sterlite was the biggest loser on the Sensex, down more than 5 percent on China woes.

Other metals stocks like Tata Steel and Hindalco Industries were down 3 percent each. State-run oil explorer ONGC shed over 4 percent to hit a 7-month low Rs 351 as Macquarie lowered target price for the stock to Rs 470 (from Rs 500), largely to factor-in the impact of lower crude price on ONGC Videsh (OVL is unaffected by subsidy, & contributes around 17 percent to ONGC’s earnings). Macquarie downgraded Cairn India to neutral from outperform and also cut its target price by 19 percent to Rs 267 on fall in crude oil prices.