The fall in the Indian benchmarks was triggered by a global rout led by United States stocks that saw their biggest one-day fall in six years on Monday, as investor profit taking brought the market back down from record highs seen in late January, after benchmark bond yields rose to a four year high last week. "We aren't living in an island so there will be ripple effect of what is happening in world on Indian stock markets".
The BSE index opened with a loss of 344.60 points on 34,718.85 and extended it losses hitting the intra-day low of 34,520, within initial 10 minutes of trading.
The strong wage data pointed to higher inflation that may lead to higher interest rates by the US Federal Reserve. The Nifty 50 Index also lost 1.6 percent.
Among secondary indices, the S&P BSE Mid-Cap index provisionally tumbled 1.68%.
Adhia said he will discuss the issue of the fall in local markets with the finance minister. "Just because something applies in global markets doesn't mean it has to happen in India too".
Indian markets were already reeling under pressure after the government presented the budget that focused on populist measures ahead of general elections in 2019 and re-imposed long-term capital gains (LTCG) tax on equities. "We couldn't have shifted budget's date, global meltdown in stock exchange came at very wrong time for us.Following budget on 1st Feb, even after declaring there is long term capital gain tax, market was okay at end of day".
The currency weakened 0.2 percent to 64.19 per dollar as of 3:45 p.m.in Mumbai after touching 64.4350 intraday, the lowest level since December 18.
Vinod Nair, head of research at Geojit Financial Services Ltd, said the global sell-off sparked by a spike in global bond yield created in a knee-jerk reaction in the domestic market. Earlier, the benchmark plunged 1,274.35 points on heavy unwinding suffered after a record-breaking loss on Wall Street after investors fret over rising United States borrowing costs.