BENGALURU: Indian shares tumbled more than 3% and the rupee hit an eight-month low on Monday as a relentless surge in COVID-19 cases and a possible lockdown by a large state threatened to derail a recovery in Asia’s third-largest economy.

India reported another record daily surge in coronavirus infections and overtook Brazil to be the second worst-hit country by the health crisis on Monday.

The state of Maharashtra, home to the country’s financial capital, Mumbai, is considering a lockdown and could take a final decision this week, a senior government official said.

The NSE Nifty 50 index closed 3.53% lower at 14,310.80, while the S&P BSE Sensex ended down 3.44% at 47,883.38. The Nifty 50 has now retreated about 7% and the Sensex is down 9% from their mid-February record highs.

The rupee weakened to a more than eight-month low of 75.1375 against the dollar.—Reuters