Sensex and Nifty tumbled over 1 per cent on Monday, tracking heavy losses in index majors Reliance Industries, HDFC Bank and ICICI Bank amid negative cues from global markets.
The S&P BSE Sensex plunged 540 points or 1.33 per cent lower at 40,145.50 while the broader NSE Nifty tumbled 162.60 points or 1.36 per cent to 11,767.75.
The top laggards on the BSE included (dropped around 6 per cent), followed by M&M, Reliance Industries (RIL), Tata Steel, Tech Mahindra, SBI, Axis Bank and ICICI Bank.
Shares of RIL sank around 4 per cent after Amazon.com Inc won an interim arbitration award against its partner Future Group for selling its retail business to Reliance Industries for Rs 24,713 crore.
On the other hand gainers were represented by Nestle India, Kotak Bank, IndusInd Bank, PowerGrid and HUL.
On the broader market, the S&P BSE MidCap and SmallCap ended with losses at 1.77 per cent and 0.88 per cent respectively.
The Indian market opened on a subdued note following mixed global cues as coronavirus cases in Europe surged and several countries considered re-imposing strict lockdown measures, said Narendra Solanki, Head- Equity Research (Fundamental), Anand Rathi.
During the afternoon session, the market continued to trade weak with selloff in metals, auto, realty and financial stocks, he added.
On the global front, bourses in Shanghai, Tokyo and Seoul ended on a negative note. Stock exchanges in Europe were also trading weak in early deals.
Meanwhile, international oil benchmark Brent crude was trading 2.04 per cent lower at USD 41.14 per barrel.
In the forex market, the rupee depreciated 23 paise to close at 73.84 against the US dollar.