A benchmark index of the Indian equities markets, the 30-scrip BSE Sensitive Index (Sensex), plunged by 254 points or 1.00 percent during the late-afternoon trade session on Monday.
The wider 50-scrip Nifty of the National Stock Exchange (NSE) was also trading in the red. It was down 65 points or 0.77 percent at 8,394.05 points.
The Sensex of the S&P Bombay Stock Exchange (BSE), which opened at 27,893.25 points, was trading at 27,703.58 points at 2.30 p.m., down 253.92 points or 0.91 percent from the previous day’s close at 27,957.50 points.
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The Sensex touched a high of 27,903.29 points and a low of 27,624.58 points in intra-day trade.
According to Angel Broking, Indian markets opened on a positive note, tracking SGX Nifty and most of the Asian markets.
It was observed that the Indian markets were mainly impacted due to the hawkish remarks made by Federal Reserve chair Janet Yellen, who said the U.S. central bank will likely raise interest rates within this year.
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The markets are cautious about the U.S. Fed’s stand that the rate hike might take place in the later part of the year.
With higher interest rates in the U.S., the foreign portfolio investors (FPIs) are expected to be led away from the emerging markets such as India.
Sector-wise, metals, capital goods, fast moving consumer goods (FMCG), banks, information technology (IT) and healthcare came under intense selling pressure.
However, buying was observed in the automobile sector.
The S&P BSE metal index dived 149.24 points, capital goods index receded by 132.04 points, FMCG index decreased by 108.03 points, banking index declined by 75.44 points, IT index was lower by 60.27 points and healthcare index was down 45.30 points.
However, automobile index gained by 18.13 points.