The Bombay Stock Exchange benchmark Sensex fell over 244 points in early trade on Monday on capital outflows by foreign funds amid weak global cues.
The 30-share index, which had lost over 524 points in the previous four sessions, fell further by 244.02 points, or 1.38 per cent to 17,347.16.
The wide-based National Stock Exchange index Nifty also declined by 79.60 points, or 1.2 per cent to 5,183.00.
Marketmen said besides weak global cues, fears of an interest rate hike by the Reserve Bank of India in its credit policy to be announced tomorrow also dampened trading sentiments.
Asian bourses were down up to 1.7 per cent in the morning trade on Monday as the US Dow Jones Industrial Average ended 1.13 per cent down in the previous session following fraud charges against Goldman Sachs by the US Securities Exchange Commission.
All the sectoral indices were trading in the negative zone with losses up to 1.85 per cent.
DLF Ltd fell 1.82 per cent to Rs 324, Tata Steel by 1.53 per cent to Rs 683.85, Sterlite Industries by 1.86 per cent to Rs 822.40, Reliance Industries by 1.27 per cent to Rs 1,069.50, Infosys Technologies by 0.69 per cent to Rs 2,766.50, Hero Honda by 0.36 per cent to Rs 1,912.60 and State Bank of India by 1.05 per cent to Rs 2,025.25.