Indian stock markets dropped in trade as European markets saw steep cuts, with the German DAX, French CAC and UK's FTSE seeing severe selling pressure.
Benchmark indices ended the day lower as investors were tentative ahead of a 2-day meet by the US Fed Reserve beginning on Tuesday.
Cairn India too dropped following a poor set of quarterly numbers. The stock was down 3.5 per cent in trade after reporting heavy quarterly losses.
Among the few stocks that gained ground from the Sensex were Bharti, Bajaj Auto and TCS. PSU banking stocks saw heavy selling pressure. Bank of Baroda dropping 3 per cent in trade, while Oriental Bank also lost three per cent and Syndicate Bank also fell 3 per cent in trade.
The Mid cap index lost 1 per cent as selling in government owned banks dropped the indices lower.
Meanwhile, Asian markets dropped lower, while most of Europe was trading with losses.