The Singapore International Arbitration Centre's (SIAC) interim order asking Future Group to put its plans of selling its retail business to Reliance Group on hold has dampened the mood on the D-Street. Shares of RIL plunged were trading almost 4 per cent on Monday, triggering a 700-point downfall of the Sensex by afternoon.
Shares of ICICI Bank and Tata Steel also added to the losses amid negative cues from global markets.
Reliance Industries was the top laggard in the Sensex pack, followed by Tata Steel, Bajaj Finance, Asian Paints, M&M, ICICI Bank and Bajaj Finserv. On the other hand, IndusInd Bank, Nestle India, PowerGrid and L&T were among the gainers.
In the previous session, Sensex settled 127.01 points or 0.31 per cent higher at 40,685.50; and the Nifty rose 33.90 points or 0.28 per cent to end 11,930.35.
Exchange data showed that foreign institutional investors bought equities worth Rs 906.93 crore on a net basis on Friday.
"Indian equities are likely to witness some amount of volatility this week due expiry factor," said Arjun Yash Mahajan, Head Institutional Business at Reliance Securities.
Additionally, announcement of second quarter earnings by a large number of companies and key economic data especially infrastructure output (core sector) and fiscal deficit for September would be key things to watch out for, he stated.
On the global front, bourses in Shanghai, Tokyo and Seoul were trading on a negative note in mid-session deals. Meanwhile, international oil benchmark Brent crude was trading 1.64 per cent lower at $41.38 per barrel.
(With PTI inputs)