(RTTNews) - Indian shares fell sharply on Tuesday as the dollar's gains in international markets and higher U.S. Treasury yields spurred risk aversion.
Two-year yields, which track short-term rate expectations, crossed 1 percent for the first time since February 2020, reflecting expectations for a Fed policy rate hike as soon as March.
Treasuries dropped across the curve, pushing two-year and 10-year yields up to levels last seen before the pandemic roiled markets.
Markets also awaited a press conference by Finance Minister Nirmala Sitharaman at 4:30 pm on an "important economic issue".
The benchmark 30-share S&P BSE Sensex ended at 60,754.86, down 554.05 points or 0.90 percent from its previous close, while the broader NSE Nifty index settled at 18,113.05, down 195.05 points or 1.07 percent.
Grasim, Eicher Motors, UltraTech, Tata Consumer Products and Maruti Suzuki India all fell around 4 percent while Axis Bank topped the gainers list to close 1.8 percent higher after reports the private sector lender is closing in on Citi India's consumer unit.
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