China shares closed at a three-month low on Tuesday as investors feared further tightening of monetary measure by the China?s central bank. In January, China?s central bank had tightened the reserve ratio by 50 basis points to 15%.
Shanghai Se Composite IX ended the day at 2,934.71, down by 6.65 points, or 0.23%. While other Asian markets like Jang Seng and Nikkei 225 ended the day with some gains. Back home, with continuous selling by the foreign institutional investors (FIIs), benchmark indices closed the day to there lowest in the past 12 weeks. According to the provisional data provided by the Bombay Stock Exchange (BSE), FIIs were net sellers at over Rs 450 crore its tenth consecutive selling session.
The 30-share Sensex of the BSE lost 192.59 points, or 1.18%, to end the day at 16,163.44. The broader S&P CNX Nifty of National Stock Exchange (NSE) lost 69.60 points, or 1.42%, to close the day at 4,830.10. Deven Choksey, MD of KR Choksey Securities said, ?Money is not flowing in the secondary market as several big funds are waiting to invest in the FPO of NTPC. There has been intense selling by the foreign funds in the last few trading session.? All the BSE sectoral indices ended the day in red with bankex and realty being the worst performer. The NSE?s derivatives segment reported a turnover of Rs 79,000 crore, up 31% against the previous session, while the average daily turnover in the last six months stood at approximately 74,400 crore.