Benchmark equity indices fell in early trade on Monday, the third day in a row, due to negative global market trends and fresh foreign money outflows.
The market was also cautious ahead of the release of wholesale and retail inflation figures for July later in the day.
The BSE Sensex dropped 461.48 points to 64,861.17. The Nifty fell 154.1 points to 19,274.20 on the NSE.
The top laggards in the Sensex pack were Tata Motors, State Bank of India, JSW Steel, Bajaj Finance, Tata Steel, Bajaj Finserv, Tech Mahindra, Power Grid, Mahindra & Mahindra, Tata Consultancy Services, HCL Technologies, and HDFC Bank.
Sun Pharma and Nestle benefited.
In Asian markets, Seoul, Tokyo, Shanghai, and Hong Kong were all trading in the red.
On Friday, US markets finished mainly lower.
According to market statistics, foreign institutional investors (FIIs) sold securities worth Rs 3,073.28 crore on Friday.
"The market structure has shifted slightly negative." The rise in the dollar index to 103 and the rise in the US 10-year bond yield to 4.18 are both terrible for capital flows to emerging countries. According to V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, the FPI selling a number of Rs 3,073 crore last Friday is in line with these unfavorable tendencies.
Brent crude fell 0.85% to USD 86.07 a barrel, the global oil benchmark. The BSE index lost 365.53 points, or 0.56 percent, to 65,322.65 on Friday. The Nifty fell by 114.80 points, or 0.59 percent ending at 19,428.30.