Stock market benchmark index BSE Sensex crashed over 1,170 points to log its worst single-day drop in over seven months on Monday. The plunge was prompted by concerns over the government’s reform measures after its announcement of repeal farm laws. The equity index also dropped because of weak listing of Paytm, the country’s largest fintech firm. 

Extending its losses for the fourth straight session, the BSE gauge plunged by 1,170.12 points or 1.96 per cent to settle the day at 58,465.89, its lowest closing level in over two months. In terms of absolute single-session drop, this was the biggest fall since April 12 this year. Similarly, the NSE Nifty fell by 348.25 points or 1.96 per cent to 17,416.55, marking its lowest level seen after September 20. 

Among top losers on the Sensex were Bajaj Finance, Bajaj Finserv, Reliance Industries (RIL), NTPC, Titan and SBI, diving as much as 5.74 per cent. RIL sank by over 4 per cent after the company shelved a proposed deal to sell a 20 per cent stake in its oil refinery and petrochemical business to Saudi Aramco for an asking of $15 billion. 

On the other hand, Bharti Airtel, Asian Paints and PowerGrid managed to clock gains. One97 Communications, Paytm’s parent firm, tumbled by over 13 per cent to close at 1,360.30 a share on the BSE. 

Sectorally, BSE realty, energy, consumer durables, auto, oil and gas, and finance indices fell up to 4.45 per cent, while telecom and metal indices ended with gains. Broader midcap and smallcap indices fell up to 2.96 per cent. 

“Finally, the bears got their act together after a long wait as a series of events over the weekend gave them the upper hand with almost all the sectoral indices, barring the metal index, plunging,” said S Ranganathan, the head of research of LKP Securities. 

The repealing of the agriculture laws had an impact on the PSU stocks, while the O2C (oil-to-chemicals) deal not going through left a 4.5 per cent cut on Reliance, he noted. He further added that even as IPO investors came to terms with the reality, the inflationary impact on demand across several sectors continued to worry the street. 

Vinod Nair, the head of research of Geojit Financial Services, said: “Subdued listing and continuation of weak trading of Paytm, India's largest, new-generation fintech, is a big sentimental setback to the domestic market, which was thriving on the strong primary market. It will impact the inflow of money from the retail segment, which has been a key player during the year. 

Weak inflow from FIIs would possibly get higher due to the withdrawal of three farm acts which brought a stoppage to the government’s reformist agendas in context to coming State elections next year, he said, adding that it was a key factor for India to trade at a premium to emerging market during the year. 

Elsewhere in Asia, bourses in Hong Kong ended with losses, while Tokyo, Shanghai and Seoul were positive. Stock exchanges in Europe were largely positive in mid-session deals. 

Meanwhile, international oil benchmark Brent crude rose by 0.34 per cent to $79.16 per barrel. On the domestic forex market front, the rupee fell by 9 paise to close at 74.39 against the US dollar.