Benchmark indices continued to reel under selling pressure for third consecutive session on Monday. The 30-share BSE Sensex fell 151.45 points to 36,395.03 and the Nifty50 plunged 54.80 points to 10,888.80.
The broader markets also caught in bear trap with the Nifty Midcap index falling 1.7 percent and Smallcap shedding 1.8 percent, underperforming frontliners.
The market breadth was largely in favour of bears as about two shares declined for every share rising on the NSE.
Reliance Industries and ICICI Bank were leading contributors to the Nifty's fall.
Dr Reddy's Labs and M&M were biggest losers among Nifty50 stocks, down more than 5 percent each. ONGC, Hindalco Industries and UltraTech Cement were down 4-5 percent.
However, Tata Steel, Cipla, IOC, Tata Motors and HCL Technologies gained 1-2.5 percent.