Benchmark indices opened 2 per cent lower on Monday, with the rupee hitting a lifetime low as investors awaited inflation data later in the day, while global markets plunged over fears of aggressive policy tightening by the US Federal Reserve later this week.
The NSE Nifty 50 index was down 2.3 per cent at 15,833.45, after touching its lowest in nearly four weeks.
The S&P BSE Sensex, too, fell 2.4 per cent to 52,990.35 in early trade.
The rupee touched a lifetime low of 78.28 to the dollar while the benchmark 10-year bond yield hit 7.60 per cent, its highest since February 28, 2019.
The Nifty IT index was down 2.6 per cent, while the NSE bank index fell nearly 3 per cent.
Asian stocks dropped over fears that the Fed would tighten policy on Wednesday, after data last week showed the U.S. consumer price index hit its highest in over 40 years last month.
Rising COVID-19 cases in Beijing added to woes, only a short time after the city relaxed curbs to quell a recent outbreak. (Reporting by Tanvi Mehta in Bengaluru; Editing by Shailesh Kuber)