It was a total bloodbath on Dalal Street as the Nifty 50 tanked 906.95 points, or 3.96 per cent at 21,997.50, while the Sensex nosedived 2,792.89 points, or 3.71per cent at 72,571.80 at 11:30 am.
Historically, Indian equities have entered bear markets when the US has slipped into recession, foreign brokerage, Morgan Stanley said in a report. The US interest rate cycle and, thus, the US dollar could continue to be a source of volatility for Indian equities in the coming months due to their negative effect on earnings and BoP.
Last week, the central bank raised rates by 75 basis points, marking the sharpest rate hike since 1994.
