The benchmark BSE Sensex ended over 150 points lower Monday as foreign investors cut down bets on disappointing IIP data and weak trend in other Asian markets.
After a volatile session, the 30-share index settled 156.28 points, or 0.43 percent, down at 35,853.56, while the broader NSE Nifty fell 57.35 points, or 0.53 percent, to finish at 10,737.60.
The fall was led by L&T, IndusInd Bank, PowerGrid, NTPC, TCS, ICICI Bank, Axis Bank, Hero MotoCorp, Bharti Airtel and SBI, declining up to 2.64 percent.
On the other hand, Yes Bank was the biggest gainer on Sensex, rallying up to 6.22 percent, on reports that the lender had shortlisted its executive Rajat Monga and a CEO of a foreign bank to succeed long-serving Managing Director and Chief Executive Officer Rana Kapoor.
Infosys was also among the top gainers, rising 2.58 percent, after the company Friday said it will buyback shares worth up to Rs 8,260 crore and offer shareholders a special dividend of Rs 4 per share as part of the company's Rs 13,000 crore-capital allocation policy.
Other gainers include, Sun Pharma, Bajaj Finance, Maruti and Tata Motors, rising up to 1.68 percent.
"Early hiccups to Q3 results due to mixed outcome from IT & Bank blue-chips negatively influenced the domestic market.
"Additionally, sharp fall in IIP and headwinds from global market due to slowdown in world economy, US shut-down and Brexit impacted the sentiment. Consolidation in domestic market was broad based as FIIs were on a selling mode, while DIIs were on the sideline due to concerns over oil prices, weak INR and fiscal deficit," Vinod Nair, Head of Research, Geojit Financial Services said.
According to experts, overall investor sentiment was weak after the government on Friday released the industrial output growth numbers, which dropped to a 17-month low of 0.5 percent in November on account of contraction in manufacturing sector, particularly consumer and capital goods.
On a net basis, foreign portfolio investors (FPIs) sold shares worth Rs 687.20 crore Friday, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 123.17 crore, provisional data available with BSE showed.
"The Eastern market indexes, except Nikkei, were in the red today in response to the accelerating fears of a global slowdown, and also the impact of the tariff war between China and the US, both of which have started showing early signs of its impact on China...Domestically, the weak IIP data raised concerns with regard to the expected pick-up in growth rates," Joseph Thomas, Head Research, Emkay Wealth Management, said.
On the macro front, the rupee depreciated 32 paise to 70.81 against the US dollar.
Brent crude futures were trading 1.49 percent lower at $59.58 per barrel.
Elsewhere in Asia, Korea's Kospi fell 0.53 percent, Shanghai Composite Index slipped 0.71 percent, and Hong Kong's Hang Seng dropped 1.38 percent. While, Japan's Nikkei jumped 0.97 percent.
In Europe, Frankfurt's DAX was down 0.55 percent, Paris CAC 40 fell 0.77 per cent, and London's FTSE shed 0.73 percent.
"On the domestic front going forward we believe that Q3FY19 numbers and management commentary from India Inc will be keenly watched by market participants and will play a crucial role in further market upside."Additionally US-China trade wars, rising crude oil prices, FII outflow and the upcoming general elections will keep the markets volatile in the short term," Hemang Jani, Head - Advisory, Sharekhan by BNP Paribas, said.