Key benchmark equity indices slid by almost 1% each following a sell-off in financial and IT stocks even as fears of contagion risk from the global banking crisis dented sentiment.
Investors were also worried about the U.S. Federal Reserve raising interest rates. The S&P BSE Sensex fell 360.95 points, or 0.62%, to 57,628.95 on Monday. The top losers in the Sensex pack included Bajaj Finserv (4.25%), Bajaj Finance (3.18%), Wipro (2.46%), Tata Motors (1.96%) and State Bank (1.91%).
The broader NSE index lost 111.65 points, or 0.65%, to close at 16,988.4
“The fear of contagion from the financial crisis kept investors away from the equity markets as the global market faces numerous hurdles,” said Vinod Nair, Head of Research, Geojit Financial Services.
“Despite Swiss regulators’ intervention to protect the global financial system, investor sentiment remained shaky. The market is now awaiting the outcome of the Fed meeting to see how they will respond to the ongoing crisis, particularly in terms of rate hikes. Investors expect the central bank to raise interest rates by 0–25 basis points,” he added.
