Mumbai: The S&P BSE benchmark Sensex tumbled by 311 points in the late Monday morning trade on persistent selling pressure triggered by fall in the global market coupled with foreign capital outflows.
Cautious approach of investors ahead of the Reserve Bank of India's quarter review of Monetary Policy at 1100hrs Tuesday also affected the market sentiment.
The sensex resumed lower at 20,899.03 and dropped further to 20,787.25 before quoting at 20,822.60 at 1030 hrs, showing a sharp fall of 310.96 pts or 1.47 percent from its last weekend's level.
The NSE-50 share Nifty also fell by 95.85 points or 1.53 percent to 6,170.90 at 1030hrs.
Major losers were Tata Motors 4.72 percent, SSLT 3.85 percent, Hindalco 3.69 percent, Tata Steel 3.64 percent, Icici Bank 3.55 percent, Maruti 3.53 percent, Axis Bank 3.10 percent, M&M 2.41 percent, HDFC Bank 2.31 percent and Bharti Airtel 2.12 percent.
Asian stocks declined sharply in their early trade as US stocks witnessed a steep slide on last Friday on concern that the fear of global economic recovery faltering spurred investors to sell riskier assets. Key benchmark indices in Taiwan, Hong Kong, China, Singapore, Japan, Indonesia and South Korea were off 0.69 percent to 2.99 percent.
The domestic market sentiment was hit adversely by data showing that foreign funds were net sellers on last Friday. Foreign institutional investors (FIIs) sold shares worth a net Rs 230.96 crore as per provisional data from the stock exchanges.
The market may remain volatile this week in view of the expiry of futures and options January contract on coming Thursday, experts feel.