Sensex takes a sharp plunge, Nifty PSU banks down over 4 pc

Equity benchmark indices were on a weak note during early hours on Monday mainly due to negative global cues.

On the other hand, authorities stepped up security in tensed Jammu and Kashmir, and restricted mobile internet services amid fast-paced developments.

At 10:15 am, the BSE S & P Sensex was down 566 points at 36,552 while the Nifty 50 slipped 169 points to 10,829. At the National Stock Exchange, all sectoral indices were in the red with Nifty PSU banks down by 4.3 per cent, metal by 3.2 per cent and realty by 1.7 per cent.

Among stocks, Yes Bank took a massive 8 per cent drop to trade at Rs 81.30 per share. Tata Motors was down by 5.6 per cent, JSW Steel by 5.3 per cent, State Bank of India by 4.9 per cent and Vedanta by 4.6 per cent.

However, IT majors Tata Consultancy Services and Infosys gained by over 1 per cent.

Meanwhile, Asian shares slid to six-and-a-half month lows as investors headed to safer financial instruments with escalating US-China trade tensions.

Japan's Nikkei shed 2.4 per cent to the lowest since early June and South Korea's Kospi tumbled 2.2 per cent to hit its lowest since December 2016. In China, the blue-chip index fell 0.8 per cent while the troubled Hong Kong market hit a seven-month trough.

Global stocks have taken a beating after US President Donald Trump said last week he will impose 10 per cent tariff on the remaining 300 billion dollars of Chinese imports from September 1.