Sensex opened more than 500 lower with trading at 28,351. On Monday morning 29 of 30 index stocks were in the red. The Nifty broke below the 8,700-level in the opening trade on heavy selling after speculation of a possible US rate hike.
The BSE Sensex tanked by 545.94 points or 1.89 per cent to 28,251.31 with all the sectoral indices led by realty, banking, infrastructure etc, tumbling by up to 2.74 per cent.
Moreover, the rupee also depreciated by 25 paise to 66.93 against the dollar in opening trade at the foreign exchange market.
Investors turned cautious ahead of macroeconomic data for July and inflation data for August - scheduled to be released later in the day. Sensex also lost 248.03 points in the previous session on Friday.
On similar lines, the National Stock Exchange index Nifty dropped by 167.30 points or 1.88 per cent to 8.699.40. It happened due to a jolt following a meltdown in global equities on renewed speculation about a possible US rate hike, dragging down the key indices.
Most of the 30-Sensex constituents led by ICICI Bank, Hero Motocorp, Tata Motors, Axis Bank, Tata Steel, M&M, L&T, SBI, Adani Ports, Bajaj Auto, ONGC, Maruti Suzuki, Asian Paint, HDFC Ltd and HUL were trading in negative zone, falling by up to 3.36 per cent.