Sensex crashes 812 points, Nifty falls 254 points

Mirroring the sharp sell-off in global markets, Indian equities crashed on Monday, as investors turned jittery and booked profits even as novel coronavirus cases continued to rise amid economic uncertainty. The Sensex dived 811.68 points to close at 38,034.14 while the Nifty plunged 254.4 points to close at 11,250.4.

The rally in the markets in the last few months was triggered by loose monetary policies adopted by central banks of developed countries. This led to a sharp disconnect between markets and the economy at large. The uncertainty around an additional fiscal stimulus in the US failed to enthuse investors who resorted to book profits.

So far in September, buying by foreign portfolio investors (FPIs) into Indian equities has slowed down, with the total buying standing at $563.03 million. The FPI buying has, however, continued for the fifth straight month. The rupee appreciated by 7 paise against the dollar to close at 73.38.