Sensex and Nifty fell sharply, extending losses to a fifth session in a row, amid a selloff in global markets.
Asian markets suffered big losses, amid speculation that global central banks might be forced to tighten policy more aggressively.
The BSE Sensex fell 309 points to close at 34,757 while the NSE Nifty settled at 10,666.
The Sensex and Nifty had slumped more than 2 per cent on Friday, posting their biggest fall in nearly 15 months, as the long-term capital gains tax on equity investments, announced in Budget 2018, dampened sentiment.
The latest selloff in global markets was triggered by Friday’s US jobs data which showed wages growing at their fastest pace in more than eight-and-a-half years and fuelling inflation expectations.
This has led to expectations that the Federal Reserve – the US central bank – could raise interest rate faster than expected.
