Key share indices ended over 2% lower on Monday because of profit booking after sharp gains last week with ITC among the index heavyweights leading the decline.
Last week, the Sensex and Nifty topped key levels of 20,000 and 6,000, respectively, on the back of robust FII inflows, rally in the global markets, strong corporate earnings and better-than-expected IIP numbers.
The 30-share Sensex ended at 19,692 down 431 points or 2.14% and the 50-share Nifty ended at 5,980 down by 127 points or 2.08%.
The Sensex and the Nifty reached an intra-day low of 19,670 levels and 5,973 mark, respectively.
Asian markets ended lower in trades on Monday as sentiment was hit by selling pressure in commodities.
While, US labour market data pointed to a steady recovery trend in the world's largest economy.
Hang Seng slipped 331 points to close at 22,989, Shanghai Composite slipped 5 points to close at 2,242, Straits Times ended weaker by 15 points at 3,428 and the Taiwan Weighted lost 32 points to close at 8,248. While, Japan's Nikkei was the only outperformer in Asia, the index closed higher by 175 points to settle at 14,782.
European markets are trading lower with CAC, DAX and FTSE slipping between 0.3-1%.
Back home, after four months, the consumer-price inflation came back to single digit at 9.39% in April against 10.39% in the previous month.
Meanwhile, country's merchandise exports grew by 1.6% to $24.16 billion in April this year, whereas imports increased by 10.9%.
India's April trade deficit leapt to $17.8 billion, a trade ministry official said, on a massive surge in imports of cheaper gold that will increase concerns about the current account deficit in Asia's third largest economy.
Foreign institutional investors’ ownership of the thirty stocks that make up the Sensex is at its highest level in eight years.
This comes even as promoters shed their stake in these companies to the lowest in eight years, according to a Bank of America Merrill Lynch India Strategy report.
On the sectoral front, BSE FMCG, Metal and Capital Goods indices slumped by 3% each. Sectors like Auto, Oil & Gas, PSU, Realty, Banks, Power, IT, Consumer Durable and Healthcare slipped between 1-2%.
ITC was the top Sensex loser, down over 5% amid profit taking after the stock rallied 24% in past one month on the BSE. ITC has outperformed the market by surging 24% from Rs 285 since April 11, compared to 8.5% rise in benchmark Sensex till Friday.
Other notable losers are Tata Steel, Bharti Airtel, Tata Motors, L&T, BHEL, GAIL, Sterlite, Bajaj Auto and Hindalco, all falling between 2-4%.
Meanwhile, BSE Midcap index plunged by 1.45% whereas BSE Smallcap index ended down 1.17%.
The market breadth in BSE ended unhealthy with 1,538 shares declining and 811 shares advancing.