Sensex Plunges Over 500 Points, Financials, Autos Lead Losses

Asian stocks dropped on Monday as investors mulled the implications of a surprise hawkish shift last week by the U.S. Federal Reserve

The domestic stock markets opened weak, with the BSE Sensex plunging more than 500 points or 1 per cent, on the back of negative global cues. Asian markets are trading in the red across the board after comments by Federal Reserve on interest rates spooked Wall Street over the weekend. Federal Reserve official James Bullard had said the U.S. central bank might raise interest rates sooner than previously expected. At 9:20 am, the BSE Sensex was trading at 51,981.75, lower by 380.55 points or 0.76 per cent and the NSE Nifty was at 15,574.45, down 112 points or 0.70 per cent. All the BSE sectoral indices were trading in the red, with the financial and auto indices taking the most hit. In the broader markets, the BSE Midcap index and BSE Smallcap index were trading lower by 0.7 per cent and 0.3 per cent respectively. Asian stocks dropped on Monday as investors mulled the implications of a surprise hawkish shift last week by the U.S. Federal Reserve, while the Treasury yield curve flattened further with 30-year yields dropping below 2 per cent.