Benchmarks spiralled lower as a plunging rupee and Turkey's financial crisis sparked a retreat from equities, while lacklustre macro data further sapped investor confidence.
Investments through participatory notes into Indian capital markets plunged to over nine-year low of Rs 80,341 crore till July-end amid stringent norms put in place by the watchdog Sebi to check misuse of these instruments.
Bruised world shares and emerging market currencies fought to regain their footing, after China said it will hold trade talks with the United States later this month and Turkey’s lira continued its recovery run.
Sensex tumbled over 188 points to close at 37,663.56, tracking weak global cues on concerns over Turkey's financial crisis amid sustained foreign fund outflows.
The blue chip FTSE 100 .FTSE was up 0.6 percent at 7,539.00 points by 0855 GMT, while mid caps .FTMC also rose 0.6 percent.
Shares in Italy’s Atlantia and other toll road operators came under heavy pressure on Thursday after the government said it would look to revoke a motorway concession and tighten rules after a deadly bridge collapse.
European shares bounced back on Thursday after Beijing said it would hold trade talks with the U.S. in Washington later this month, spurring a recovery in investors’ risk appetite on hopes of a trade war thaw.
The key Indian equity indices pared major losses made during the morning session to trade flat on Thursday afternoon.
Shares in China’s Tencent Holdings lost more ground on Thursday after it logged its first quarterly profit decline in nearly 13 years and said it did not know when it would get Chinese approval to make money off its most popular game.