Liquidity concerns and reports that China has called off planned trade talks with the US weighed on the market sentiment.
"This turmoil which was triggered last week by housing and NBFC's continued to trouble the market as panic spread. In spite of assuring statements by key government and institutional leaders, market was concerned about the near-term headwinds like quality and increased cost of funds along with tighter liquidity.
"At the same time consolidation in emerging markets, continued increase in oil prices and high valuation further aggravated the anxiety," said Vinod Nair, Head of Research, Geojit Financial Services Ltd.
Seeking to calm the nerves of worried investors, Finance Minister Arun Jaitley said Monday that the government would take all measures to ensure adequate liquidity for non-banking financial companies (NBFCs) and mutual funds.
From the 30-share basket, Mahindra & Mahindra has lost the most plunging 6.46 per cent followed by HDFC 6.22 per cent, Indusind Bank 4.94 per cent and Adani Ports and Special Economic Zone 4.49 per cent.
On the BSE, 2,111 stocks declined and 538 advanced while 168 remained unchanged.
Also, nearly 470 stocks hit their 52-week lows on BSE Monday.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.