New Delhi: Indian rupee and stocks crashed heavily on Tuesday, while bonds rose in line with global markets after US markets suffered their biggest loss in over six years with investors also wary ahead of the outcome of the monetary policy review on Wednesday.

The Sensex, a benchmark index comprising 30 established companies, slumped nearly 1250.38 points to 33,506.78 points before recovering slightly to a fall of 926 points. The Nifty declined 350 points to 10,343 tracking global selloff amid strong US jobs data

Both the Sensex and Nifty fell nearly 3.5%, their biggest fall since August 2015.

Over the last two days Indian markets have taken a beating after the Modi government presented a budget that reneged on fiscal deficit targets and imposed a long-term capital gains tax on equities.

Asian shares and US stock futures sank, after Wall Street suffered its biggest decline since 2011 on Monday as investors’ faith in factors underpinning a bull run in markets began to crumble.

India’s benchmark ten-year bond yield was down five basis points at 7.55% at 0340 GMT, while the partially convertible rupee was at 64.39 per dollar versus its previous close of 64.07.

The broader NSE Nifty was down 3.5% in early trade.

(With Reuters inputs)