Mumbai: Equity benchmarks Sensex and Nifty plunged over 1.8 per cent on Tuesday, the biggest single-day decline in nearly five weeks, mirroring massive global selloffs amid simmering US-China tensions and mounting COVID-19 cases.
The BSE gauge Sensex ended 660.63 points or 1.80 per cent lower at 36,033.06; while the NSE Nifty closed 195.35 points or 1.81 per cent down at 10,607.35.
Banking stocks continued to slump, crashing over 3 per cent; while metals and auto counters emerged as other major sectoral laggards, ending lower by 2.5 per cent each.
Shares of the HDFC duo led the fall on the indices, shedding up to 2.94 per cent, after HDFC Bank said it has launched a probe into its auto lending practices following allegations against the conduct of a long-time executive who retired on March 31 this year.
IndusInd Bank, Axis Bank, Maruti, PowerGrid, Bajaj Finserv and SBI were among the other major laggards.
On the other hand, Titan, Bharti Airtel and Bajaj Auto were the gainers. Broader midcap and smallcap indices finished 0.95 per cent lower.
Indian markets were also worried about the increasing number of localised lockdowns which would in turn again slowdown the predicted recovery for businesses, he added.
On the currency front, the Indian rupee tumbled 23 paise to settle at 75.42 against the US dollar as risk appetite remained weak amid heavy selling in domestic equities and strengthening American currency.
The rupee opened lower at 75.33 at the interbank forex market and lost ground to touch a low of 75.49 against the US dollar.
The local unit settled at 75.42 against US dollar, down 23 paise from its last close of 75.19. The dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.17 per cent to 97.62.
The Financial Benchmark India Private Ltd (FBIL) set the reference rate for the rupee/dollar at 75.1567 and for rupee/euro at 85.1220. The reference rate for rupee/British pound was fixed at 95.1168 and for rupee/100 Japanese yen at 70.30.
Meanwhile, international oil benchmark Brent crude futures fell 0.73 per cent to $42.41 per barrel.
Asserting that the "Chinese predatory world view" had no place in the 21st century, the US on Monday categorically rejected the territorial claims made by Beijing in South China Sea, stating that it has no legal grounds to unilaterally impose its will on the region.
On the Coronavirus front, the number of cases around the world linked to the disease has crossed 1.30 crore.
In India, the number of infections spiked to 9.06 lakh, according to the health ministry.
Bourses in Shanghai, Hong Kong, Tokyo and Seoul closed with significant losses. Stock exchanges in Europe also began on a negative note.