Fears of an interest rate hike in the US after strong data, added to fresh selling pressure in stocks with the Sensex and the Nifty opening the week on a dismal note.
The climbdown of the government on the Landbill and weak Asian cues were other reasons for the fall in the markets. Check Top Sensex gainers and losers
Metal stocks resumed their downward slide with Vedanta and Tata Steel among the losers in trade. Select banking stocks were also trading lower with State Bank of India seeing a cut of almost 1.5 per cent, while ICICI Bank and Canara Bank were among the other losers in trade.
Mid cap stocks also declined with stocks like Emami, Wockhardt and Voltas among the losers.
Sun Pharma, Lupin and HCL Tech were among the early gainers from the Nifty. Meanwhile, the Rupee was trading at 66.26 to the dollar against Friday's close of 66.17.
Asian markets were weak with the Shanghai Composite dropping by more than 2 per cent, while the Japanese Nikkei and The Hang Sang also fell in trade.