MUMBAI, Aug 24 – Indian share slumped nearly 6 percent on Monday, posting their biggest daily falls since January 2009 as steep falls in Chinese equities sparked widespread unrest in global markets.
The rupee also fell, hitting its weakest since early September 2013, and prompting Reserve Bank of India Governor Raghuram Rajan to say he stood ready to deploy foreign exchange reserves to curb volatility in the currency.
The global bearish sentiment led the barometer 30 scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE) to its steepest dive.
The S&P BSE Sensex which opened at 26,730.40 points, closed at 25,741.56 points, down 1,624.51 points or 5.94 percent from its previous close of 27,366.07 points.
Meanwhile, the broder 50 share NSE index lost 5.92 percent, also its biggest fall since Jan. 7 2009. It earlier hit a low of 7,769.40, its lowest since OCT. 17, 2014.
Declines were across the board, with bluechips and NSE heavyweight Reliance tumbling 8.6 percent and Larsen & Toubro falling 6.2 percent.
Mid and small-cap stocks too took a beating, the BSE mid-cap index fell 7.68 percent while the small-cap index ended 8.81 percent lower.
Analysts cited weak global cues eminating from a continuous slide in the Chinese markets, along with concerns over the Indian government’s stand on minimum alternate tax (MAT) as reasons for the sharp fall on Monday.