However, in last one hour trade, benchmarks witnessed a slight of recovery from the losses.
Top gainers were Dr Reddys Labs up 2.72 percent, Cairn India up 1.82 percent, Reliance Power up 1.44 percent and Wipro up 1.33 percent.
Top losers were Tata Motors down 4.07 percent, BPCL down 4.03 percent, Maruti Suzuki down 3.90 percent and Sun Pharma down 3.64 percent.
At 4:20 pm, the BSE Sensex was at 18,222.67 down 263.78 points and NSE was at 5,463.15 down 75.60 points.
Bear grips the market; Nifty drops about 99 pts
Monday's market was in the hands of bear, the downtrend continued due to the rise of political tension between DMK-Congress.
Furthermore, the London brent crude was trading at USD 116.82 a barrel and the NYMEX crude was at USD 106 a barrel, this was another worrying factor for international markets.
The BSE Sensex bombed over 323 points to 18,163 . Meanwhile, the 50-share NSE Nifty dropped 99 points to 5,439.
At 2:45 pm, the BSE Sensex was at 18,263.59 down 222.86 points and NSE was at 5,474.25 down 64.50 points.
Sensex sheds over 361 points
Indian equity benchmark was witnessing heavy selling pressures due to the political worries between Congress and DMK . The DMK, a key ally of the Congress-led UPA government at the Centre, said that it is pulling out of the government.
The BSE Sensex dipped by 361 points and the Nifty erased over 100 points gains from the last week rally on Monday's trade.
Meanwhile, further rise of crude oil prices in international markets broke the sentiments across the globe. Auto stocks declined on worries that the government may hike fuel prices as crude oil prices surged to cross the USD 106 per barrel mark to hit a 29-month high.
At 12:45 pm, the BSE Sensex was at 18,116.09 down 370.36 points and NSE was at 5,425.85 down 112.90 points.
Sensex slumps over 300 pts; Nifty dips 100 pts
The first session of the week opened flat as the BSE benchmark Sensex fell by over 300 points and the Nifty dipped over 100 points in the early trade on Monday, Mar 7.
The 30-share level, which shed 3.31 points in the previous session, sprunged 262.29 points to 18,224.16 on the back of losses in auto, banking, metals, oil and gas, and IT sector stocks in the first few minutes of trade.
Crude oil was trading above the USD 105 a barrel. The London crude oil was above the USD 117 a barrel. The Libya unrest played crucial in rising price of crude oil in international markets.
Top losers were Tata Motors, Maruti Suzuki, M&M, Reliance Communications, Jindal Steel, Sun Pharma and Axis Bank with 3-4 per cent fall, among frontliners.
At 11:50 am, the BSE Sensex was at 18,156.90 down 329.55 points and NSE was at 5,437.60 down 101.15 points.