The rupee hit a lifetime low as investors awaited inflation data later in the day, while global markets plunged on fears of aggressive policy tightening by the US Federal Reserve later this week. After hitting its lowest level in over four weeks, the NSE Nifty 50 index was down 2.3% at 15,833.45. In early trade, the S&P BSE Sensex slid 2.4% to 52,990.35.
The rupee fell to a new low of 78.28 against the dollar, while the benchmark 10-year bond yield climbed to 7.60 percent, its highest level since February 28, 2019. The Nifty IT index fell 2.6 percent, while the NSE bank index dropped nearly 3%. After data last week showed the US consumer price index hit its highest level in almost 40 years last month, Asian stocks fell on expectations the Fed might tighten policy on Wednesday. Rising COVID-19 cases in Beijing have added to the city’s difficulties, barely a few weeks after the authority’s greater restrictions to combat a recent outbreak.