Sensex Crashes Over 750 Points On Aggressive US Rate Hike Bets
Indian equity benchmarks fell on Monday, tracking lower Asian peers and a sell-off in risk assets following a strong US jobs report on Friday that made a case for the Federal Reserve to keep hiking interest rates rapidly, and rising oil prices weighed on sentiment.
The BSE Sensex crashed 825.61 points to 57,365.68 in early trade, and the broader NSE Nifty index declined 249.95 points to 17,064.70.
Both benchmarks recorded their first weekly gain in four on Friday, rising over 1 per cent last week.
The largest laggards in the 30-share Sensex pack were Asian Paints, HDFC, HDFC Bank, Tata Steel, Nestle, and Hindustan Unilever.
Power Grid, on the other hand, was the lone winner.
"Equity markets are likely to see a weak opening in Monday trades owing to weak Asian cues following a sharp fall in the US markets on Friday. The solid US September jobs report suggests that the Federal Reserve remains on track to lift interest rates aggressively," said Prashanth Tapse, Senior Vice President for Research at Mehta Equities, ahead of the opening bell.
"Investors now look ahead to the monthly Consumer Price Index report on Thursday amid fears that higher energy prices could fuel inflationary pressures," he added.
