Indian shares settled lower on Monday, taking cues from a broader selloff seen across the globe on fears of a recession in the United States. The benchmark BSE index closed down 0.93 percent at 37,808.91, while the broader NSE index slipped 0.90 percent to 11,354.25. Financials were the biggest losers on the index, with Nifty's bank index settling 1.02 percent lower. Shares of debt-ridden airline Jet Airways Ltd ended 12.69 percent higher after Chairman Naresh Goyal stepped down from the company's board.
Concerns about the health of the world economy heightened last week after cautious remarks by the US Federal Reserve sent 10-year treasury yields to the lowest since early 2018. "The inversion in the US yield curve shows severe growth concerns with increasing possibility of a recession over the next 18 to 24 months," said Upasna Bhardwaj, senior economist at Kotak Mahindra Bank.
Nifty's bank index slipped for a second straight session, falling as much as 1.26 percent, with ICICI bank and Housing Development Finance Corporation slipping 1.9 percent and 1.5 percent, respectively. Nifty Realty index lost as much as 2.3 percent, its steepest intraday loss since Feb. 26. Shares of Tata Motors Ltd declined for a third straight session, slipping as much 2.17 percent.