The Bombay Stock Exchange benchmark Sensex went into a freefall early on Monday, plummeting 427 points before recovering slightly to end the day 1.4% down at 18,222.7 points — an overall fall of 263.8 points.
The fall was driven by rise in crude prices and the political drama where DMK announced that it will pull out its ministers from the UPA government.
The biggest losers on Monday were the stocks in the Auto and capital goods sector as the two sectoral indices fell by 2.6% and 2.4% respectively. Among Sensex companies Maruti Suzuki and Tata Motors fell by 3.7% and 3.6% respectively.
Oil prices too surged and the brent crude was trading between $117 per barrel and $118 per barrel on Monday as a result of the continued unrest in Libya.