Equity benchmark Sensex dropped over 1,100 points in closing trade on Monday tracking losses in index majors M&M, L&T, IndusInd Bank amid tepid cues from global markets.
The 30-share BSE index ended 1,145.44 points or 2.25% lower at 49,744.32. The broader NSE Nifty sank 306.05 points or 2.04% to finish at 14,675.70.
Mahindra and Mahindra was the top loser in the Sensex pack, shedding around 4.5%, followed by L&T, Indusind Bank, Tech Mahindra and Axis Bank.
On the other hand, Tata Steel, ONGC, HDFC Bank and Kotak Mahindra Bank were among the gainers.
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During the afternoon session, markets started to drift lower and traded in red as amid fresh concerns over the increase in the number of COVID-19 cases contributed to the fears that the economic impact will be much larger than earlier estimates, he noted.
“Also, the major western markets failed to provide any support as it opened to trade in red with equity investors growing concern about rising bond yields in recent weeks which could hurt high-growth companies reliant on easy borrowing,” Solanki added.
Elsewhere in Asia, bourses in Shanghai, Hong Kong and Seoul ended on a negative note, while Tokyo traded with gains.
Stock exchanges in Europe were also trading in the red in mid-session deals.