Sensex Plunges 371 Points; Nifty Nears 7600

(RTTNews) - Indian shares tumbled on Monday and the rupee slipped against the dollar as weak cues from Asia and a firmer dollar in the wake of hawkish comments from U.S. Federal Reserve officials and better-than-expected U.S. GDP data dented investors' appetite for risk.

The monthly derivatives expiry slated for Thursday and caution ahead of RBI policy review due on April 5 also spurred risk aversion.

Meanwhile, Finance Minister Arun Jaitley today justified the slashing of interest rates on small savings schemes, saying that "extraordinarily" high interest rates would make the economy sluggish.

The benchmark BSE Sensex hit one-week low to close 371.16 points or 1.46 percent lower at 24,966.40 while the broader Nifty index fell by 101.40 points or 1.31 percent to 7,615.

Natco Pharma shares slumped nearly 14 percent. The company said it has received minor observations by the U.S. FDA following recent inspections at its two facilities.

Tata Steel lost 5.4 percent ahead of a board meeting on Tuesday to decide the fate of two of its loss making plants in the U.K.

Sun Pharma, Hindalco and Vedanta retreated 4-9 percent.

Kesoram Industries shares rallied 1.5 percent. The company has decided to hive off its rayon business to an unlisted company for an estimated Rs 480 crore.

Sadbhav Infrastructure Project and IL&FS Engineering and Construction rose about 3 percent each on winning new orders.

GVK Power & Infrastructure jumped 6.7 percent after its board approved selling 33 per cent stake in the Bangalore International Airport.

Lloyd Electric & Engineering advanced 2.7 percent after announcing an acquisition.