The indices on the weekend Friday were overshadowed by the return of investors to profit-booking amid concerns over economic growth.
The Sensex declined 334 points to settle at 40,445, while the Nifty slipped 96.90 points to close at 11,921.50.
Shares of Yes bank slipped 10.47%, SBI lost 5.35%, Zeel down 4.62%, IndusInd Bank and Gail lost 3.35% each among Nifty losers.
Shares of PSU bank index in the Nifty were slipped the ground, down by 4.39%. The popular bank Nifty index on the NSE fell 1.17% to settle at 31,341.55. Media, Financial and auto stocks too were also the biggest losers.
At the policy meeting held by the RBI yesterday, the announcement that the MPC had reduced its GDP growth forecast for the current fiscal year (2019-20) by 5-pc cent has weakened the market sentiment. For Free stock trading tips and top advisory tips, subscribe.
Shares of Infratel, Kotak Bank, JSW Steel, Tata Steel and DrReddys gained among 50-scrip Nifty by 0.33 pc to 5.26 pc.