(RTTNews) - Indian shares fell sharply on Monday and the rupee slumped to a near four-week low, as concerns over Europe's energy crisis coupled with hawkish comments from central bank officials on the pace of future rate rises dented demand for riskier assets. The rupee dropped to 79.9125 per U.S. dollar, the lowest level since July 27, as another Federal Reserve official flagged the likelihood of continued aggressive monetary tightening.
Russia announced a three-day halt to European gas supplies via the Nord Stream 1 pipeline and ECB board member Isabel Schnabel spoke in favor of another large interest rate increase next month, adding to worries over a global recession.
The U.S. dollar extended its climb against rivals as a modest easing by China's central bank served to highlight economic troubles.
The benchmark S&P/BSE Sensex slumped 872.28 points, or 1.46 percent, to 58,773.87 while the broader NSE Nifty index plunged 267.75 points, or 1.51 percent, to settle at 17,490.70.
Divis Laboratories, Asian Paints, Adani Ports, Tata Motors and Tata Steel fell 3-4 percent in the Nifty pack while FMCG stocks such as Nestle India, Britannia Industries and ITC posted modest gains on defensive buying.
