Rupee slumped to as low as 66.48 per dollar on Monday morning.

Commodities markets, too, tumbled in Asia as fears spread that a more severe slowdown in China would pull down other economies in the region, denting energy and raw material consumption.

Sensex plunged as much as 1,000 points in opening trade going under 27000 points, while the 50-share NSE Nifty went below 8,000 levels for the first time in two months. All 50 constituents of Nifty were in red. Markets made a decent attempt to recover in last leg of trade supported by buying in pharma and FMCG counters but could only managed to wipe out a portion of losses suffered in the early trade, as traders remained concerned about the global growth lacking any major cues.

Indian shares may follow their Asian peers lower on Monday as Chinese shares continued their sharp fall and tensions prevailed on the Korean Peninsula.

As stocks and the rupee hit new low, market expert Akash Jindal told ANI that the main reason behind the Dalal Street’s bloodbath are global factors, specially Chinese economy showing a poor data.

The selloff in China markets weighed on risk assets across the globe. On the global front, European markets made weak start, while Asian markets ended lower. The rupee was trading at its weakest since September 2013 at 65.83 down by 30 paise since China devalued its yuan on August 11 along with weakness in the local equities.

The Dow Jones industrial average closed down 530.94 points, or 3.12 per cent, to 16,459.75, the S&P 500 lost 64.84 points, or 3.19 per cent, to 1,970.89 and the Nasdaq Composite dropped 171.45 points, or 3.52 per cent, to 4,706.04.

With Shanghai slumping more than eight percent concerns deepened about China’s stalling economy which has rattled equity investors around the world.