Indian markets tanked on Monday after global markets were spooked by the talk that the US Federal Reserve might raise US interest rates as early as next week.
Sensex, which tanked close to 550 points in early trade, finally ended the day 443 points in the red to close at 28,353.54. Nifty too plunged 151 points to end at 8,715.60.
Investor sentiment suffered a massive jolt following a meltdown in global equities on renewed speculation about a possible US rate hike, dragging down the key indices.
World over, the markets bled. India too followed other Asian markets. Hong Kong’s Hang Seng tumbled 2.83 per cent, Japan’s Nikkei down 1.51 per cent while Shanghai Composite Index fell 2.06 per cent.
In early trade, Sensex plunged by 545.94 points or 1.89 per cent to 28,251.31 with all the sectoral indices led by realty, infrastructure, banking and auto, tumbling by up to 2.74 per cent. The gauge had lost 248.03 points in the previous session on Friday.
On similar lines, Nifty dropped by 167.30 points or 1.88 per cent to 8.699.40.
Most of the 30-Sensex constituents led by ICICI Bank, Hero Motocorp, Tata Motors, Axis Bank, Tata Steel, M&M, L&T, SBI, Adani Ports, Bajaj Auto, ONGC, Maruti Suzuki, Asian Paint,HDFC Ltd and HUL were trading in negative zone, falling by up to 3.36 per cent.
The rupee depreciating by 25 paise to 66.93 against the dollar in opening trade at the forex market also had a bearing on the sentiment.
US stocks had tumbled last Friday, as investor nervousness increased following a nuclear test by North Korea and Federal Reserve officials’ comments lifted rate hike bets.
The Dow Jones Industrial Average ended 2.13 per cent lower in Friday’s trade.
(With inputs from PTI)