The Bombay Stock Exchange benchmark Sensex on Monday fell by over 110 points to settle below the 17,000-level, with metal and realty stocks taking a severe beating amid steep declines on LME and Dubai bourses.
Marketmen said with the rupee sliding against the US dollar, there is now capital outflows, which weighed against the investor sentiment. Besides, Gulf exchanges suffering sharp loses again added to the bearish sentiment.
Dubai' DFM index saw steep fall of 5.84 per cent, while Abu Dhabi's General Index was down 1.73 per cent even as Dubai World is is talking to its creditor on Monday.
There was large scale selling in metal segment after a fall in metal prices on London Metal Exchange (LME).
"Commodity prices were jacked up on rising value of the American currency in the overseas market, which dragged the metal stocks down," said Bonanza Portfolio Assistant Vice President Avinash Gupta.
Rupeee was trading significantly lower in the range of 46.58 against the US dollar during intra-day.
A hectic drop of 3.07 per cent in heavyweight Reliance Industries after company's bonus shares hit the market for trading today mainly dragged the Sensex down.
"The market looked tired and as the European cues were down and mixed Asian cues kept Indian markets under pressure," added Gupta. However, major Asian indices displayed a firm trend on the back of encouraging US employment data.
After resuming higher, the 30-share barometer moved in a medium range before finishing the day at 16,983.14, netting a fall of 118.40 points or 0.69 per cent.