Negative global cues emanating from rising Covid cases as well as fears over domestic asset quality pulled India's equity markets lower on Monday.
Initially, equity markets had a gap-down opening on fears of lower than expected quarterly results of banks and financial sector in Q1FY22, due to fears over the impact on asset quality after the second Covid wave.
Sectorally, banking, financials and metal sectors edged lower.
The BSE Sensex ended the day's trade at 52,553.40 points, lower by 586.66 points, or 1.10 per cent, from its previous close.
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The Nifty50 on the National Stock Exchange closed at 15,752.40, lower by 171 points, or 1.07 per cent, from its previous close.
Significantly, the fall in NSENifty50 was the highest in terms of points and percentage basis since April 30.
"Bank stocks came under pressure on renewed fears of asset quality, rising slippages following Q1 results from Banks. Metal and Auto stocks also came under selling pressure following virus scare and inflation worry on a global basis," HDFC Securities' Head of Retail Research Deepak Jasani said.
"Nifty has fallen sharply with a downgap and the next support is 0.8 per cent away. Retail investors may review their portfolios and start raising some cash/book profits partly. In case the Nifty settles and starts to rise again, they could find another set of stocks to ride on."
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Motilal Oswal Financial Services' Head, Retail Research Siddhartha Khemka said: "Selling was witnessed in banking and financial services stocks after HDFC Bank's net profit missed expectations as bad loan provisions rose and asset quality deteriorated."
"Realty stocks were in focus today on the back of news that major developers in the country have increased residential prices by 8-10 per cent due to rise in input prices, such as cement, steel and so on."
