(Reuters) - Indian shares fell on Monday tracking Asian peers, with banking stocks taking the brunt, as fears of recession in the United States intensified.
Concerns about the health of the world economy heightened last week after cautious remarks by the U.S. Federal Reserve sent 10-year treasury yields to the lowest since early 2018.
“The inversion in the U.S. yield curve shows severe growth concerns with increasing possibility of a recession over the next 18 to 24 months,” said Upasna Bhardwaj, senior economist at Kotak Mahindra Bank.
“A significant global economic slowdown may trigger a severe risk-off, which could spill over into our markets.”
The broader NSE Nifty fell 0.87 percent to11,357.95 as of 0528 GMT. The index slipped more than 1 percent in its biggest daily loss since February 26 in early trade.
The benchmark BSE Sensex also shed 0.87 percent to 37,828.37.
Nifty’s bank index slipped for a second straight session, falling as much as 1.26 percent, with ICICI bank and Housing Development Finance Corporation slipping 1.9 percent and 1.5 percent, respectively.
Nifty Realty index lost as much as 2.3 percent, its steepest intraday loss since Feb. 26.
Shares of Tata Motors Ltd declined for a third straight session, slipping as much 2.17 percent.
Only 11 of 50 stocks on the NSE index were in the green. Fuel retailers like Indian Oil Corporation snapped three sessions of losses, rising as much as 2.9 percent, while Hindustan Petroleum Corp added as much as 1.9 percent.
Shares of Jet Airways Ltd rose as much as 3.87 percent. The company’s Chairman Naresh Goyal is expected to leave the board of the cash-strapped airline on Monday, a local television channel reported.
Reporting by Chandini Monnappa in Bengaluru; Editing by Shrejay Sinha