Extending losses for the sixth consecutive session, the domestic markets ended lower in trade on Monday after a private survey showed the manufacturing sector cooled to its slowest in nearly two years in October.
The CNX Nifty broke below the 8,000 level for the first time since October 1 but recovered in late trade to end the day at 8,050.80, down 15 points, while the S&P BSE Sensex reclaimed its crucial psychological level of 26,500 to settle 97.68 points down at 26559.15.
Bajaj Auto was the top loser on both the indices and ended the day 4.8 per cent down on BSE after it reported a 9 per cent fall in total vehicle sales for October.
Market breadth remained negative with 16 of the 30 Sensex stocks ending in red.
The Nikkei Manufacturing Purchasing Managers' Index, compiled by Markit, fell to 50.7 in October from September's 51.2. The 50-mark divides expansion from contraction.
Falls in Asian markets also dented market sentiment after soft Chinese factory surveys and US consumer spending data raised concerns over the global economic outlook.
Meanwhile, Coffee Day Enterprises , the operator of India's biggest coffee chain, fell as much as 17 per cent in its market debut on Monday, as investors fretted over a generous price tag they said underestimated concerns around its complex structure.
Indian Overseas Bank settled the day 11.29 per cent down after the company reported a net loss of Rs 550.83 crore for the second quarter ending September 30, 2015.
India's volatility index surged over 10 per cent on Monday, its biggest single-day rise since September 22. VIX ended over 8 per cent up.
"Overall the mood is cautious because since the last five days we are seeing losses," Alex Mathews, head of research at Geojit BNP Paribas, said.
Among Asian markets, China's Shanghai Composite ended 1.70 per cent down, Hong Kong's Hang Seng index dipped 1.19 per cent at close, while Japan's Nikkei settled the day 2.10 per cent down at 18,683.24.
On Friday, US markets closed in the red due to some late selling pressure after choppy trading on account of mixed economic data.
Lowdown on markets today
Sensex at 26398.06, down 260 points
Nifty at 7996.20, down 70 points
Sensex at 26,442.96, down 213.87 points
Nifty at 8,015.50, down 50.30 points
Sensex at 26,454.99, down 201.84 points
Nifty at 8,013.35, down 52.45 points
Sensex at 26,538.46, down 118 points
Nifty at 8,032.35, down 33 points
Sensex at 26,583.78, down 73.05 points
Nifty at 8,036.10, down 29.70 points
Copyright©2022 Living Media India Limited. For reprint rights: Syndications Today