LAC chill, GDP fall, Covid surge: storm hits heated markets

On the debt side, investors continue to repose trust, as seen from positive flows in money market, ultra-short and low duration funds. (File)

After breaching the 40,000 mark for the first time in six months, the benchmark Sensex Monday crashed 1,382 points from the day’s high to close at 38,628.29 as a fresh India-China flare-up was reported in Ladakh and worries grew over the contraction in India’s first quarter GDP. Implementation of new margin norms from September 1 got added to this mix and led to a sharp sell-off .

The Sensex fell 839 points or 2.13 per cent over Friday’s closing and Nifty at…