Global markets witnessed a bearish trend ahead of the US Presidential debate, with European and Asian markets seeing sharp falls on the back of selling pressure.
The Sensex ended the day losing 375 points at 28,295 points, while the Nifty dropped 108 points in trade.
Oil prices also remained volatile, after having dropped 4 per cent on Friday on reports that Saudi and Iran were unwilling to freeze production.
Members of OPEC will meet in Algeria on Sept 26-28 and volatile oil prices would keep equity markets volatile.
Shares in Drug firm Suven Life Sciences, has been granted two product patents, one each in India and Japan.
Vardhman Textiles too had a good session with the stock jumping as much as 4 per cent after the company approved buyback up to Rs 720 crore at maximum price of Rs 1,175 per share.
Banking stocks saw some selling pressure with stocks like ICICI Bank and State Bank of India leading the losers.
PSU banks like Indian Bank and Union Bank lost more than 2 per cent each. GNA Axles, which had launched an IPO recently, got listed and managed to end the day 19 per cent over and above its IPO price.
Meanwhile, the rupee was last seen trading at 66.86 to the US dollar.