The 30-share BSE index fell 540 points or 1.33 per cent to close at 40,146; while the broader NSE Nifty plunged 163 points or 1.36 per cent to close at 11,368.
Bajaj Auto, M&M, Reliance, Tata Steel, Tech Mahindra and SBI were the top losers in the sensex pack falling up to 6.10 per cent.
While Nestle India, Kotak Bank, IndusInd Bank, Power Grid and Hindustan Unilever were the top gainers rising as much as 2.48 per cent.
On the NSE platform, sub-indices Nifty Auto, Metal and Media fell as much as 3.50 per cent.
“Indian equities are likely to witness some amount of volatility this week due expiry factor,” Arjun Yash Mahajan, head institutional business at Reliance Securities told news agency PTI.
Announcement of second quarter earnings by a large number of companies and key economic data especially infrastructure output (core sector) and fiscal deficit for September would be key things to watch out for, he added.
Shares of Reliance Industries dragged nearly 4 per cent — to its lowest level since August 4 — after e-commerce giant Amazon won an interim order to pause Future Group’s $3.38 billion asset sale to India’s most valuable company.
However, Reliance has dismissed Amazon’s push to delay the acquisition and said that it would enforce its rights and complete the transaction in terms of the scheme and agreement with Future group without any delay.
While, shares of Future Retail dropped as much as 8.48 per cent and the company said it would take steps in enforcement proceedings to close the deal without delay.
On the currency front, rupee depreciated 23 paise and settled at 73.84 (provisional) against the US dollar on Monday as muted domestic equities and strong American currency weighed on investor sentiment.
Meanwhile, US Secretary of State Mike Pompeo arrived in India and kicked off his five-day Asian trip aimed strengthening ties with countries in the face of rising Chinese influence across the region.
(With agency inputs)