A plunge in US stocks on Monday cut the fortunes of the world's 500 richest people by $114 billion. The US Dow suffered its deepest fall in history, erasing all its 2018 gains. The BSE Sensex cracked below the 34,000 - mark by plunging about 1,275 points, or 3.6 per cent in opening trade.
WHY INDIAN MARKETS TUMBLED?
- Market sentiment took a beating following sharp losses in other Asian markets which was driven by a record- loss on Wall Street.
- Inversors also turned cautious, ahead of the RBI policy meet this week as they felt that repo rate might be increased amid inflation concerns. Repo rate is the rate at which the central bank lends short-term money to commercial banks.
- The rupee depreciating by 29 paise to 64.36 against dollar too dampened the sentiment.
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