Chinese Markets Recover, Sensex Still Down

<p><em>China is the second biggest market in terms of market capitalisation and it's fall is bound to hit India, reports <strong>Paramita Chatterjee</strong></em><br><br><br>It’s so far been a roller coaster ride for the capital markets on Thursday. Sensex, the benchmark index of Indian equities markets, tanked 26.95 points in the afternoon trade, while Nifty was 0.09 per cent down at 8,355.15 in the backdrop of negative news prevailing in the global markets in Greece and China.<br><br>Both the indexes continued to trade on a sluggish note, weakness in IT stocks, even as they did recover in between. This is despite China’s markets recovering on Thursday and on the commodities front base metal prices stabilising after cracking yesterday.<br><br>On a positive note, however, the small-cap stocks have witnessed some buying interest.<br><br>Typically, when one market falls, especially that of the size of China, it’s natural for other markets to follow suit. The impact on India will be there as after all China is the second biggest market in terms of market capitalisation. Besides, if the Greece-eurozone crisis escalates and results in the nation crashing out of the eurozone, the impact will certainly be felt on Indian shores too and make inventors more risk averse!&nbsp; Also, what's adding to negative sentiment is the impact on the rupee. In the short term, there is a possibility of a devaluation in the Indian currency.</p>