The benchmark indices, BSE Sensex and NSE Nifty, dropped over 1.5 per cent each by close of trading on Monday.

Sensex dropped 667 points or 1.77 per cent to 36,939. The Nifty settled 173 points or 1.57 per cent lower at 10,899.

The top gainers on the Sensex were Titan (up nearly 3 per cent), Tata Steel (up over 1.5 per cent), SBI, Nestle India and HCL TEch.

The laggards were led by IndusInd Bank (down 3.7 per cent), Kotak Bank (3.5 per cent), ONGC (3.4 per cent), Axis Bank (3.16 per cent) and Reliance (2.90 per cent).

Among the BSE sectoral indices, the consumer durables index, up 1 per cent, was the only notable gainer. The majority of the indices were in the red, led by the banking, finance and energy indices, which dropped over 2 per cent each. Oil and gas, realty, telecom and utilities dropped over 1 per cent each.

Earlier in the day, the Sensex tumbled over 300 points in the opening session, tracking losses in Reliance Industries and the HDFC twins amid weak cues from global equities.

In the previous session, the 30-share Sensex ended 129.18 points or 0.34 per cent lower at 37,606.89, while the NSE Nifty fell 28.70 points or 0.26 per cent to 11,073.45.

Exchange data showed that foreign institutional investors sold equities worth Rs 958.64 crore on a net basis on Friday.

According to traders, selling in index majors RIL and HDFC duo dragged key indices lower.

Further, foreign fund outflow, concerns over rise in COVID-19 cases across the world kept investors cautious, they added.

The number of cases around the world linked to COVID-19 has crossed 1.8 crore, while the infection count in India crossed 18 lakh.

Bourses in Hong Kong and Seoul were in the red, while Shanghai and Tokyo were trading on the positive territory.

Global oil benchmark Brent crude was trading 0.55 per cent lower at $43.28 per barrel. (with inputs from PTI)