Mumbai: India's equity benchmark indices witnessed a sharp downswing during the afternoon session on Monday with across-the-board sell-off amid weak global cues.
In Asian markets, the sell-off was triggered after the International Consortium of Investigative Journalism (ICIJ) reported on top-secret suspicious activity reports worth more than 2 trillion dollars.
Between 2010 and 2017, several banks helped facilitate transactions red-flagged by the Treasury Department's Financial Crimes Enforcement Network (FinCEN) for suspected money laundering, terrorism, drug dealing and financial fraud.
That led to a meltdown on Indian bourses as well with banking stocks taking a hit.
The BSE S&P Sensex closed 812 points or 2.09 per cent lower at 38,034 while the Nifty 50 moved lower by 283 points or 2.46 per cent at 11,222.
All sectoral indices at the National Stock Exchange were in the red with Nifty PSU bank dipping by 4.4 per cent, private bank by 3.7 per cent, pharma and auto by 4.4 per cent each and realty by 5.9 per cent.
Shares of IndusInd Bank and ICICI Bank fell by 8.6 per cent and 5 per cent respectively after the FinCEN leaks said almost all Indian banks could be part of the suspicious transactions.
Auto stocks slipped with Tata Motors down by 7.8 per cent and Mahindra & Mahindra by 5.1 per cent. Hindalco, Tata Steel and JSW Steel fell between 5 and 7 per cent.
However, some IT stocks like Tata Consultancy Services and Infosys were up a tad.
Meanwhile, Asian shares were in the negative zone after the FinCEN disclosures. Investors also awaited developments on US fiscal stimulus and Covid-19 vaccines amid a resurgence of infections in Europe.
Hong Kong's Hang Seng was down by 1.74 per cent while South Korea's Kospi edged lower by 0.95 per cent. Shanghai composite slipped by 0.63 per cent but Japan's Nikkei gained by 0.18 per cent.