Surging bond yields across the globe, pushed global indices lower dragging the Indian benchmark Nifty and the Sensex down.
The Sensex was down 400 points at 34,640 points with the Nifty trading down 130 points at 10,628 points. At one stage in early morning trade the Nifty had broken the 10,600 points mark, while the Sensex had fallen by more than 500 points.
Asian equities too drifted lower with the Dow Jones futures plummetting as global markets were facing the worst rout in two years. The 10 year treasury advanced to 2.87 per cent in the US and if it crosses the 2.90 levels, global markets could see some more selling pressure.
Top losers from the Sensex were Vedanta, Bharat Heavy and Axis Bank. On the other hand gainers were Infosys and Wipro. Shares in Tata Motors were trading with gains ahead of results to be announced later today.
The midcap index too slumped with the index losing 2.3 per cent and the small cap index falling 2.7 per cent.