Mumbai, Aug 5 (TIWN) The equity and currency markets declined on Monday over heightened trade tension between the US and China, and the political developments in Jammu and Kashmir (J&K).

Union Home Minister Amit Shah earlier in the day proposed to revoke Article 370 of the Constitution which gives special status to Jammu and Kashmir and said the state will be split into two Union Territories: Jammu and Kashmir with an Assembly and Ladakh without one.  Though the markets did not repond to the announcement with any major volatility, the Sensex closed 418.38 points lower at 36,699.84, after trading heavy losses throughout the day. The broader Nifty fell by 134.75 points or 1.23 per cent to 10,862.60.