Closing sharply lower, the Indian equity benchmarks Sensex and Nifty, saw a major fall as the volatility index rose 12 per cent on Monday. The fall in the market is seen in line with losses across global markets as investors wait for cues from the US Federal Reserve Bank this week.
The Sensex fell as much as 524.96 points (0.89%), while Nifty 50 closed below the psychological mark of 17,400 points, dropping 188.25 points (1.07%) to 17,396.9 points.
Equity benchmark Sensex had slumped over 350 points in early trade on Monday, tracking losses in index majors Tata Steel, HDFC twins and ICICI Bank amid thin trade in global markets.
The 30-share Sensex was trading 355.27 points or 0.60 per cent lower at 58,660.62 in the morning trade. Similarly, Nifty fell 108.50 points or 0.62 per cent to 17,476.65 in initial deals.
In the previous session, the 30-share index had settled 125.27 points or 0.21 per cent lower at 59,015.89, and Nifty slipped 44.35 points or 0.25 per cent to close at 17,585.15.
Foreign institutional investors (FIIs) were net buyers in the capital market as they purchased shares worth Rs 1,552.59 crore on Friday, as per the provisional exchange data.
“Possible tapering timeline from the Fed this week, rising bond yields in the US, strengthening dollar (dollar index above 93) and news of the crisis in the large Chinese real estate developer Evergrande are likely to weigh on markets,” VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said, adding that markets are likely to turn volatile from now on, reported PTI.
Dow Junes also dropped 0.48 per cent, while FTSE 100 Index and Hang Seng Index fell 1.59 per cent and 3.30 per cent, respectively. Meanwhile, international oil benchmark Brent crude slipped 0.66 per cent to USD 74.84 per barrel.
With inputs from PTI
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