Mumbai: After rallying for two sessions, the BSE benchmark Sensex Monday tumbled over 505 points to slip below the 38,000-level as worries about global trade war and prevailing rupee crisis dampened investors mood despite the government announcing steps to stem a steep fall in the Indian currency.
The broader Nifty too nosedived over 137 points to end below the 11,400-mark.
Subdued Asian and European markets due to escalating trade war between the US and China mainly led to a caution on domestic bourses, brokers said.
The government Friday announced an array of steps, including removal of withholding tax on Masala bonds, relaxation for FPIs and curbs on non-essential imports to contain the widening CAD and check the rupee fall.
The Indian currency once again breached the 72-mark to hit a low of 72.69 (intra-day) against the US dollar.
The BSE 30-share barometer, after a lower start at 38,027.81, quickly cracked the 38,000-mark to hit a low of 37,548.93 on across-the-board selling in recent gainers and finally settled 505.13 points, or 1.33 per cent, down at 37,585.51.
The gauge had gained 677.51 points in the previous two sessions.
The NSE Nifty hit a low of 11,366.90 and finally ended 137.45 points, or 1.19 per cent, down at 11,377.75.
Financials, led by HDFC twins HDFC Ltd and HDFC Bank, emerged as the biggest draggers of the session, pulling down the key indices from their key levels.
Meanwhile, on a net basis, foreign portfolio investors (FPIs) bought shares worth Rs 1,090.56 crore, while domestic institutional investors (DIIs) made purchases to the tune of Rs 115.14 crore Friday, provisional data showed.
