Indian stock markets extended losses on Tuesday after the freefall on Monday, with both Sensex and Nifty closing in the red, while the Chinese stock markets, which had triggered a global selloff on Monday, ended trading on a mixed note.
The S&P BSE Sensex lost 43 points to close at 25,580, while the Nifty ended the day at 7,784, a loss of 7 points, or 0.09%.
The advances-to-declines ratio was skewed in favour of advances on both Sensex and Nifty.
Coal India, SBI, Hindustan Unilever, Hero Motocorp, TCS, HDFC Bank dragged the Sensex down, while Tata Steel, GAIL (India), Asian Paints and ONGC were the top gainers.
Tata Consultancy Services (TCS) lost 1% on a day when there were reports that it was in the race to acquire Perot Systems, the IT management business of Dell Inc, along with Cognizant and NTT Data.
Many bank stocks, such as SBI, Allahabad Bank, Canara Bank and Punjab National Bank, hit a fresh 52-week low on Tuesday.
Earlier, both Sensex and Nifty opened with modest gains after yesterday's crash, but fell sharply around noon, with Sensex losing over 100 points and Nifty about 30 points.
On Monday, Sensex had lost 537 points while Nifty closed 171 points down, tracking the plunge on Chinese stock exchanges that crashed more than 7%, resulting in termination of trading around 1:30 pm.
In China, the blue-chip CSI300 Index closed with a gain of 0.3% at 3,478.78, while the Shanghai Composite lost 0.3% to close at 3,287.71 points. The smaller Shenzhen Composite dropped 1.9% to close at 2,079.77 points, reported Channel News Asia.
Chinese stock markets could see yet another fall later in the week.
"(The) sharp downward move has little to do with the fundamentals of the Chinese economy and more to do with the expectation that the ban on share sales from major stakeholders at the end of this week will put downward pressure on prices," CNA quoted Philip Uglow, chief economist at MNI Indicators, as saying.