Domestic equity benchmarks (Sensex and Nifty) fell sharply on growing fears of US economy entering into recession. Concerns about the health of the world economy heightened last week after cautious remarks by the US Federal Reserve sent 10-year treasury yields to the lowest since early 2018. In Mumbai today, the S&P BSE Sensex fell as much as 1.3 per cent or 497 points to 37,667 and the NSE Nifty 50 Index dropped 1.27 per cent or 145 points to 11,311.60.
The Sensex fell 0.93 per cent or 356 points to close at 37,809 and the NSE Nifty 50 Index dropped 0.9 per cent or 103 points to shut shop at 11,354.
US 10-year treasury yields were last 1.9 basis points below three-month rates after yields inverted for the first time since 2007 on Friday. Historically, an inverted yield curve - where long-term rates fall below short-term - has signalled an upcoming recession.
Back home, sixteen of 19 sector gauges compiled by BSE ended lower led by S&P BSE Telecom Index's 2.2 per cent decline. Auto, banking, consumer discretionary goods & services, basic materials and industrials indexes on the BSE also dropped over 1 per cent each. On the flipside, S&P BSE Oil & Gas Index was top gainer, up 1.4 per cent.
Mid- and small-cap shares also witnessed selling pressure as the S&P BSE MidCap and S&P BSE SmallCap Indexes fell over 1 per cent each.
From the Nifty 50 basket of shares, 37 ended lower while 13 managed to close higher.
Zee Entertainment was the top Nifty loser, the stock fell 4.2 per cent to Rs 416.25. Bharti Infratel, Vedanta, JSW Steel, Tata Motors, UPL and Mahindra & Mahindra were also among the losers.
On the other hand, Indian Oil, ONGC, Hindustan Petroleum, Coal India and Power Grid were among the gainers.
Among the individual shares, Jet Airways surged 13 per cent after its chairman and founder Naresh Goyal stepped down from board of directors.
The overall market breadth was negative as 1,887 shares ended lower while 790 closed higher on the BSE.
(With inputs from Reuters)