The broader S&P CNX Nifty of the National Stock Exchange lost 109.25 points, or 2.03%, to close at 5,274.10 points.
Volumes remained abysmally low on both the stock exchanges on Monday, as was the trend on Friday. Dealers said investors are eagerly awaiting the results of a series of events in the days to come. The first is the quarterly review of monetary policy by the Reserve Bank of India on Tuesday.
The second is the Federal Open Market Committee meeting of the US Federal Reserve on Wednesday. Keenly watched will be the derivatives expiry on January 31 and the fourth event falls on February 1 when institutional investors, including those from overseas, will be allowed to short sell.
Among the sectoral indices, only the automobile and the banking indices ended the day in positive territory, each gaining around 1% while the IT, tech and realty indices were deep in the red, each losing around 4%.