The 30-share BSE index was trading 1,368 points or 2.76 per cent lower at 48,223. While, the broader NSE Nifty was down 405 points or 2.73 per cent at 14,430.
Top losers in the sensex pack included IndusInd Bank, Bajaj Finance, SBI, Bajaj Auto, ICICI Bank and Kotak Bank with their shares falling as much as 7.82 per cent.
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On the NSE platform, all sub-indices were trading in red with Nifty PSU Bank, Auto and Financial Services down as much as 8.01 per cent.
According to experts, spiking Covid-19 cases in the country spooked investor sentiments amid negative global cues.
“Since the second wave of the pandemic is turning out worse than expected, there is profound uncertainty about its impact on the economy and markets,” V K Vijayakumar, chief investment strategist at Geojit Financial Services told news agency PTI.
The situation is the worst in economically significant Maharashtra. This can impact the market’s assumption of around 11 per cent GDP growth and above 30 per cent earnings growth, he added.
India recorded yet another new peak in daily cases with 1,68,912 fresh infections detected on Sunday, a 10.48 per cent jump from the previous day’s tally of over 1.52 lakh cases. The day’s death toll also crossed 900 for the first time since October 10, with 904 fatalities.
In the previous session, sensex had settled 154.89 points or 0.31 per cent lower at 49,591.32, and Nifty slipped 38.95 points or 0.26 per cent to 14,834.85.
Elsewhere in Asia, bourses in Shanghai, Hong Kong and Tokyo were in the red in mid-session deals, while Seoul was trading with mild gains.
Meanwhile, international oil benchmark Brent crude was trading 0.05 per cent higher at $62.98 per barrel.
(With inputs from agencies)
