The BSE Sensex fell over 1.5 per cent, while the Nifty declined over 100 points on Monday tracking a global selloff in equities and currencies. The rupee fell to as low as 62.90 per dollar before paring losses.
Possibility of slowing growth in China and a further reduction in US central bank stimulus has triggered the global sell-off, analysts said. Turmoil in individual emerging markets such as Argentina, where the peso dropped 16 per cent over two days last week, is also spooking investors.
Asian shares also traded sharply as the US Federal Reserve is poised to continue tapering its monetary stimulus and as fears rise about an economic slowdown in China.
As of 1.30 p.m., the Sensex traded 311 points lower at 20,822, while the Nifty was down 96 points to 6,170. The rupee traded down at 62.73.
Market analyst Sarvendra Srivastava said 6,128 remains the key support for the Nifty and if markets breach the level decisively, there is a cause for concern. This is a make or break week for markets, he added.
Losses in India were exacerbated by uncertainty ahead of the RBI's policy review on Tuesday.
Although traders had not expected a rate hike earlier this month, expectations have become uncertain after hawkish comments on inflation from the central bank governor and a RBI panel report that recommended making taming retail inflation a priority.
ICICI Bank traded down 3.7 per cent while HDFC Bank fell 3 per cent. Tata Motors slumped 4.4 per cent after the automaker's managing director, Karl Slym, died on Sunday when he fell from a high floor of a hotel in Bangkok.
Ranbaxy Laboratories fell 9 per cent, adding to Friday's 19.43 per cent plunge, as the drug maker continues to reel after the U.S. drug regulator banned more of its products.
Possibility of slowing growth in China and a further reduction in US central bank stimulus has triggered the global sell-off, analysts said. Turmoil in individual emerging markets such as Argentina, where the peso dropped 16 per cent over two days last week, is also spooking investors.
Asian shares also traded sharply as the US Federal Reserve is poised to continue tapering its monetary stimulus and as fears rise about an economic slowdown in China.
As of 1.30 p.m., the Sensex traded 311 points lower at 20,822, while the Nifty was down 96 points to 6,170. The rupee traded down at 62.73.
Market analyst Sarvendra Srivastava said 6,128 remains the key support for the Nifty and if markets breach the level decisively, there is a cause for concern. This is a make or break week for markets, he added.
Losses in India were exacerbated by uncertainty ahead of the RBI's policy review on Tuesday.
Although traders had not expected a rate hike earlier this month, expectations have become uncertain after hawkish comments on inflation from the central bank governor and a RBI panel report that recommended making taming retail inflation a priority.
ICICI Bank traded down 3.7 per cent while HDFC Bank fell 3 per cent. Tata Motors slumped 4.4 per cent after the automaker's managing director, Karl Slym, died on Sunday when he fell from a high floor of a hotel in Bangkok.
Ranbaxy Laboratories fell 9 per cent, adding to Friday's 19.43 per cent plunge, as the drug maker continues to reel after the U.S. drug regulator banned more of its products.
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