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Separately, market regulator SEBI has also sought clarifications from Lava Mobiles for its Rs 1500 crore IPO. The Noida-based smartphone brand and contract manufacturer had filed the draft prospectus in September 2021 that stated a fresh issue of equity shares worth Rs 500 crore, and an offer for sale component of 43,727,603 equity shares.

Aggressive central bank intervention, currency dealers said, helped the rupee close at 78.04 to a dollar, down a quarter of a percentage point, Bloomberg data showed. This is a record closing low for the rupee, which breached the 78 mark at close for the first time.

While the consensus expectation for the US central bank’s interest rate increase at this week’s meeting is a half-percentage point, higher than expected consumer price index data last Friday prompted two banks, Barclays and Jefferies, to revise their calls for the potential of 75 basis points.

The U.S. Dollar Currency Index, which tracks the greenback against six other major currencies, was up 0.4% at 104.83, within sight of the 2-decade high of 105.01 touched in mid May.Traders have a lot on their plate this week, including policy meetings by the Fed, the Bank of England and the Swiss National Bank.

Fears that the U.S. Federal Reserve could opt for an even larger rate hike than anticipated this week to contain inflation sent two-year yields to their highest levels since 2007

Describing leverage as a weapon of mass destruction (WMD), which results in excess both on the way up and down, Kamath said leverage in times like these usually accentuates the fall. “When markets fall, long leveraged positions are required to bring additional margins, failing which positions are forced to exit resulting in the markets falling even more,” Kamath said on Twitter.

Technical charts hint at some support at 15,670, followed by the 15,400 level, but analysts do not rule out a revisit of sub-15,000 levels. Fundamentally, while analysts believe it is futile to predict a bottom at this stage, given global headwinds, levels around 15,000 on the index would look attractive, analysts said while advising investors to stay light for now.

The Dow Jones Industrial Average dropped 600 points, or 1.9% after it posted its worst week since January. The S&P 500 fell 2.4% and the Nasdaq Composite tumbled 2.8%.

“This market needs to get somewhere close to 14,000 before we can think of the bull market that started in March 2020 resumeing. So until that point, more pains are ahead but we will have an intermediate bounce one more time which will be a little bigger than what we saw between May and June.”

WTI crude futures jumped above $120 per barrel on Monday after Saudi Arabia sharply raised prices for its crude sales in July highlighting tight global supplies.