Sensex falls over 1,400 points, rupee hits fresh low

NSE Nifty 50 index ended down 2.6 per cent at 15,774.4 or 427.40 points, while the BSE index fell 2.7 per cent or 1,456.74 points to 52,846.7.

The share market sank more than 2.5 per cent on Monday and the rupee hit an all-time low as growing fears of aggressive policy tightening by the US Federal Reserve roiled investor sentiment in the run-up to domestic inflation data.

The NSE Nifty 50 index ended down 2.6 per cent at 15,774.4 or 427.40 points, its lowest level since July 2021, while the BSE index fell 2.7 per cent or 1,456.74 points to 52,846.7.

All eyes were on inflation data due later in the day. The consumer price index likely slipped modestly in May, but stayed well above the Reserve Bank of India's upper tolerance limit for a fifth consecutive month, according to a Reuters poll.

"The Indian market's valuations continue to be uninspiring, especially of consumption sectors and 'quality' stocks," said Shrikant Chouhan, head of equity research (retail) at Kotak Securities.

"Financials remain one of the few patches with reasonable valuations, but they too will struggle if India's macro-economic position was to deteriorate further."

Global peers were also lower on worries that the Fed would tighten its policy more aggressively after data released last week showed the U.S. consumer price index hit its highest in over 40 years last month.

Under pressure from a strong dollar, the rupee hit a record low of 78.28 to the greenback, while the benchmark 10-year bond yield rose to a more than three-year high of 7.60 per cent as investors dumped emerging market bonds.