Indian equity benchmarks staged a brief recovery from the lowest point of the day on Monday, but ended with cuts of more than one percent each, as hawkish comments from Fed Chair Jerome Powell triggered fears of steep hikes in COVID-era interest rates and hurt global shares.

Share Market Live

NSE

ALSO READ: Samir Arora says market may go back to June lows but India will outperform China

The S&P BSE Sensex recovered over 600 points from the lowest point of the day but ended at 57,972, down 1.46 percent from its previous close. The NSE Nifty50 settled at 17,312, down 1.4 percent from its previous close, having recovered 150 points from its intraday low.

Investors lost Rs 2.4 lakh crore in wealth as the market capitalisation of BSE-listed companies came down to Rs 274.6 lakh crore, according to provisional exchange data.

This is the third instance in the last seven trading sessions where both Sensex and Nifty shed more than one percent in a single trading session.

A total of 38 Nifty constituents ended lower. Five out of the top six laggards were IT stocks — Tech Mahindra, Infosys, Wipro, HCL Tech and TCS, finishing around 3-5 percent lower.

FMCG names outperformed in the overall weak market.

Infosys, HDFC Bank, ICICI Bank and Kotak Mahindra Bank were among the biggest contributors to the losses in both headline indices.

"Powell’s hawkish tone during the Jackson Hole symposium pointed towards a stricter rate hike while investors were expecting a milder policy action post the release of the softer July inflation reading. This has increased concern about an economic slowdown, which has caused a significant sell-off in the US market and spillover effects on markets around the world," said Vinod Nair, Head of Research at Geojit Financial Services.

"The sell-off in emerging markets like India was exacerbated by concerns over the possible withdrawal of foreign funds, which was the backbone of the recent market rally," he added.

ALSO READ: Reliance announces JioAirFiber, an ultra high-speed wireless broadband service

Catch latest market updates with CNBCTV18.com's blog