Sensex tumbles 700 pts, Nifty cracks below 11,300 level

Sensex slipped 700 points on Monday to hover around 38,150 levels, while the Nifty50 index dipped below the 11,300 level over global sell-off.

The sell-off was triggered after the leak of suspicious activity reports (SARs) filed by banks and other financial firms with the US Department of Treasury's Financial Crimes Enforcement Network (FinCen). The International Consortium of Investigative Journalism (ICIJ) reported on Suspicious Activity Reports (SARs) worth more than $2 trillion globally. These transactions are not outright evidence of frauds or proof of nefarious activities, but are red-flagged by the US authority as suspicious.

Also read — Global banks like HSBC, JPMorgan Chase, Standard Chartered moved illicit funds, FinCen documents show

Between 2010 and 2017, a number of Indian banks, irrespective of ownership – public, private and foreign -- helped facilitate transactions red-flagged by the FinCEN for suspected money laundering, terrorism, drug dealing and financial fraud, latest leaks suggest.

Shares of IndusInd Bank, Bandhan Bank, and State Bank of India fell like a pack of cards after FinCEN leaks said almost all Indian banks could be part of the suspicious transactions. The leaked documents stated that Indian banks received $482 million from outside the country and transferred $406 million from India.

Bank Nifty has crashed 693.30 points (-3.15%) to 21,331 points.