Sensex plunged more than 400 points and the Nifty was below 14,500 when the stock market opened on Monday, the first week of May tracking losses in index-heavyweights Reliance Industries, HDFC twins and ICICI Bank amid a negative trend in Asian equities.
The 30-share BSE index tanked 607.32 points or 1.24 percent to 48,175.04 in initial deals.
Similarly, the broader NSE Nifty tumbled 152.45 points or 1.04 percent to 14,478.65.
Titan was the top loser in the Sensex pack, shedding around 3 percent, followed by SBI, ONGC, Reliance Industries, Axis Bank, HDFC Bank, ICICI Bank, HDFC and Bajaj Finance.
On the other hand, M&M, Bajaj Auto, Maruti, HUL, IndusInd Bank and Nestle India were among the gainers.
Smallcap and midcap indices traded mixed. Banks and financial services indices dragged, while Nifty Metal and Nifty FMCG traded in the green.
April GST collection came in at a record Rs 1.41 lakh crore, the seventh consecutive print of over 1 lakh crore. Preliminary April trade deficit data came in at $15.24bn and the core sector expanded 6.8 percent in March over a year ago, the highest print in 32 months.
The US Dollar has strengthened across the board. The overall risk sentiment has dampened a bit. The key data/events to look forward to this week would be the Scottish election, BoE policy, and US April jobs report, said Abhishek Goenka, Founder and CEO, IFA Global.
FIIs net sellers
Foreign institutional investors (FIIs) were net sellers in the capital market as they offloaded shares worth Rs 3,465.07 crore on Friday, while domestic institutional investors (DIIs) purchased shares worth Rs 1,419.31 crore, according to provisional exchange data.
"Domestic equities do not look to be inspiring at the moment. NDA’s sub-par performance in West Bengal assembly election and possibility of emergence of strong opposition from alliance of regional parties to fight against NDA may weigh on investors sentiments," said Binod Modi Head-Strategy at Reliance Securities.
Notably, a persistent rise in the second wave of COVID-19 cases, increasing death cases and extended partial lockdown announced by several states are expected to keep economic momentum soft for May also, he added.
Active COVID-19 cases in India rose to 34,13,642 against 33,49,644 on Sunday, according to a Health Ministry update this morning.
A total of 21 companies are slated to post their March quarter numbers today, including Kotak Mahindra Bank, SBI Life Insurance Company, Tata Chemicals, Godrej Properties, L&T Technology Services and Varun Beverages.
Asian markets negative
In Asia, bourses in Hong Kong and Seoul were trading on a negative note in mid-session deals. Stock exchanges in Shanghai and Tokyo were closed for holidays, PTI said.
Meanwhile, international oil benchmark Brent crude was trading 0.39 percent lower at $66.50 per barrel.