Equity benchmark Sensex plunged over 500 points in early trade on Monday, tracking heavy losses in HDFC twins, ICICI Bank and Kotak Bank amid weak cues from global markets.
The 30-share BSE index was trading 515.54 points or 0.97 percent lower at 52,624.52 in initial deals, while the broader NSE Nifty fell 146.75 points or 0.92 percent to 15,776.65.
HDFC Bank was the top loser in the Sensex pack, shedding over 2 percent, followed by HDFC, IndusInd Bank, Kotak Bank, Axis Bank, and ICICI Bank.
On the other hand, NTPC, Bharti Airtel, Titan, PowerGrid, and Reliance Industries were among the gainers.
In the previous session, Sensex ended 18.79 points or 0.04 percent lower at 53,140.06, while the broader NSE Nifty slipped 0.80 points or 0.01 percent to 15,923.40.
Foreign institutional investors (FIIs) were net sellers in the capital market as they offloaded shares worth Rs 466.30 crore on Friday, as per provisional exchange data.
"Domestic equities do not look to be inspiring as of now. Subpar June quarter performance reported by HDFC Bank during the weekend along with visible stress in asset quality can weigh on overall financials," said Binod Modi Head-Strategy at Reliance Securities.
Asian shares fell across the board, as pessimism took hold following rising COVID-19 infections regionally and Wall Street's first weekly loss following three weeks of gains.
Bourses in Shanghai, Hong Kong, Seoul, and Tokyo were trading with heavy losses in mid-session deals.
Meanwhile, international oil benchmark Brent crude declined 1.16 percent to USD 72.74 per barrel.