BSE Sensex down nearly 350 points on weakness in China

The benchmark BSE Sensex opened nearly 350 points lower or over 1% down on the back of weakness in the Chinese markets on Thursday morning. 

The 30-share barometer was trading at 25,063.25 points, down 343.08 or 1.35% lower in early trade on Thursday.

Indian equities came under pressure after trading in Chinese stocks was suspended on the back of a heavy fall, second time this week. Trading was underway for less than 30 minutes in China, when the 7% "circuit breaker" was hit and stocks were suspended.

The "circuit breaker" went into force at the beginning of the year as part of efforts to reduce volatility on China's wild bourses, which plummeted in mid-2015, sending jitters through world markets. It was triggered for the first time on Monday. The system is based on the CSI 300 index, which tracks the largest 300 stocks on the two exchanges. If it falls by 5%, trading is initially suspended for 15 minutes.

Worries about the health of China's economy have increased on the back of weak macroeconomic factors in the beginning of the year, only to be exacerbated by worries about the looming expiry on Friday, of a ban on selling by investors holding more than five per cent of a firm, but reports have said regulators will delay lifting the measure, which was brought in during the summer's market rout to prevent further losses.