Reports that the US might impose fresh tariffs on China weighed down the global market sentiments.
Further weakening of the rupee during the day despite the government announcing measures to arrest the fall of rupee in the weekend dampened domestic sentiments.
Index-wise the Nifty50 of the National Stock Exchange (NSE) closed at 11 377.75 points lower by 137.45 points or 1.19 per cent from its previous close of 11 515.20 points.
The barometer S&P BSE Sensex which had opened at 38 027.81 points closed at 37 585.51 points lower by 505.13 points or 1.33 per cent from its previous close of 38 090.64 points.
It touched an intra-day high of 38 027.81 points and a low of 37 548.93 points.
In the broader markets the S&P BSE Mid-cap declined by 0.76 per cent and the S&P BSE Small-cap ended 0.05 per cent lower from its previous close.
The BSE market breadth was bearish with 1 441 declines against 1 282 advances. The total number of stocks traded on the exchange was 2 914 with 191 ending unchanged.
The weakness came on the back of weak global cues amid reports US could soon announce a new round of tariffs on Chinese imports said Deepak Jasani Head of Retail Research HDFC Securities.
Major Asian markets closed on a negative note and European indices like FTSE 100 DAX and CAC 40 traded in the red he said.
On the currency front the Indian rupee slipped below the 72-mark again to close at 72.51 weakening 66 paise from its previous close of 71.85 per greenback on Friday.
Investment-wise provisional data with the exchanges showed that foreign institutional investors sold scrip worth Rs 106.54 crore and domestic institutional investors sold stocks worth Rs 180.36 crore.
Sector-wise only three indices on the BSE ended in the green with marginal gains. The S&P BSE realty index gained 28.03 points the power index rose 2.86 points and the utilities index gained just 0.81 points.
On the other hand the S&P BSE banking index lost 330.74 points the consumer durables index was down 259.43 points and the auto index ended 243.10 points lower from its previous close.
The top gainers on the Sensex were Power Grid up 0.70 per cent at Rs 201.50; Tata Consultancy Services up 0.40 per cent at Rs 2 071.60; Adani Ports up 0.37 per cent at Rs 381.45; IndusInd Bank up 0.07 per cent at Rs 1 875; and Tata Steel up 0.05 per cent at Rs 615.65 per share.
The losers were Sun Pharma down 2.85 per cent at Rs 646.15; HDFC down 2.47 per cent at Rs 1 878.60; Tata Motors down 2.35 at Rs 260.20; Tata Motors(DVR) down 2.15 per cent at Rs 141.00; Relaince Industries down 2.12 per cent at Rs 1 226.25 per share.
--IANS ravi-rrb/mr
