The Bombay Stock Exchange benchmark index Sensex plunged 769 points or 3.84 per cent on renewed concerns of rising inflation in the US might make it difficult for the Federal Reserve to make another rate cut.
The 30-share index moved in a range of 19,177 to 20,032 levels before ending the trading day at 19,261. Selling was visible in metals, real estate and oil & gas counters.
In the broader markets Nifty registered its biggest one-day absolute loss of 270 points or 4.48 per cent. The 50-share index touched a low of 5,740 levels before closing at 5,777.
Asian markets are subdued on Monday with most of the indices losing over 1.4 per cent. Hong Kong’s Hang Seng and Tokyo’s Nikkei lost 3.5 per cent, 1.7 per cent respectively.
“You can see a significant short-term correction in overseas market as a result of what happens in the US, but this does not change the secular growth story that you have in China, India and Asia, I think any correction there would be a buying opportunity,” Jim Awad, Chairman of WP Stewart Asset Management said on emerging markets.
