The benchmark indices ended lower on Monday weighed by blue-chip firms like IndusInd Bank, YES Bank, Reliance Industries (RIL) and Asian Paints.
The S&P BSE Sensex ended at 34,134, down 181 points, while the broader Nifty50 index settled at 10,245, down 58 points.
Among sectoral indices, the Nifty Bank index settled largely flat. ICICI Bank rose 4 per cent to Rs 328.20. However, IndusInd Bank crashed 7 per cent to end at Rs 1,467.00.
In key stocks, RIL fell 3.5 per cent to Rs 1,063.20 on the NSE, Asian Paints slipped 3.1 per cent to Rs 1,196.90 and Dewan Housing Finance Corporation (DHFL) declined 11.1 per cent to Rs 187.00.
Asian share markets swung into the black on Monday as the promise of more stimulus boosted Chinese stocks for a second session and helped offset geopolitical concerns over Saudi Arabia, Italy and Brexit.
Blue chips in Shanghai jumped 4.8 per cent in the largest daily gain in three years, adding to Friday's bounce on Beijing's pledge of support for the economy and companies.
That helped E-Mini futures for the S&P 500 recoup all their initial losses to push 0.2 per cent higher. MSCI's broadest index of Asia-Pacific shares outside Japan turned on a dime to rise 1 per cent.
Japan's Nikkei moved up 0.4 per cent, after being down more than 1 per cent earlier, while South Korean stocks were flat.
(with Reuters inputs)