The benchmark indices made a subdued start to the week with metal stocks taking the heaviest hit after US President Donald Trump's comment that he would raise tariffs on $200 billion of goods to 25 per cent on Friday from 10 per cent.
Trump's action came as a major Chinese delegation is expected to arrive Wednesday in Washington for the latest round of talks to end the trade war between the world's two biggest economies -- a round billed as the last one and possibly leading to a deal to end the conflict.
The S&P BSE Sensex ended the day 363 points, or 0.93 per cent, lower at 38,600, with YES Bank, Tata Motors, Bajaj Finance, Tata Steel, and HDFC among the top losers. Only five of the 30 constituents of the BSE were in green.
The broader Nifty50 index, was down 114 points, or 0.97 per cent, at 11,598. About 1,146 stocks declined and 588 shares advanced on National Stock Exchange.
Only Nifty IT index finished the day in the green while all other sectoral indices ended in the red. Nifty Media index and Nifty Metal index were the top losers, down 2.18 per cent and 2.03 per cent, respectively.
Voltality-measuring index, India VIX, also rose sharply to 10.23 per cent on the day.
Cadila Healthcare shares hit a 52-week low of Rs 292, down 4 per cent in early morning trade on Monday after getting 14 observations from US health regulator for its Moraiya plant. However, the stock recovered later in the day to end 1.22 per cent higher at Rs 307.70.
Shares of YES Bank slipped 5.3 per cent to Rs 166.30 after rating agency Icra downgraded the bank's tier-I and tier-II bonds and infrastructure debt on deterioration in the credit quality of large ticket borrowers.