MUMBAI (Reuters) - The BSE Sensex plunged more than 4 percent to its lowest since October 2014 amid falls in blue chips such as Larsen & Toubro
A fall of more than 4 percent at the close would mark the biggest daily percentage fall for the Sensex since at least Sept. 22, 2011, a day also marked by steep declines in global markets.
The rupee also slumped, prompting Reserve Bank of India Governor Raghuram Rajan to say he stood ready to deploy foreign exchange reserves to curb volatility in the currency.
Still, analysts believe Indian markets could be hurt less than other countries given its sturdier economic fundamentals.
"We are facing a global market meltdown and it will have a collateral impact including the Indian market. However, the economic parameters would remain relatively stronger for India," Deven Choksey, managing director at KR Choksey Securities said.
The BSE Sensex fell as much as 4.2 percent to 26,212.91 points, its lowest since Oct. 17, 2014.
The broader Nifty fell as much as 4.3 percent to its lowest since since June 12, breaking below the pyschologically important 8,000-point level.
Both indexes were down around 4 percent each around midday trade.
Declines were seen across all sectors with the Bank Nifty down 4.93 percent.
Blue-chip stocks also took a beating, with Reliance Industries Ltd
(Reporting by Karen Rebelo; Editing by Rafael Nam and Biju Dwarakanath)
