Tata Motors (4.84%), Hero MotoCorp (3.82%) and PowerGrid 2.87% were the top Sensex losers. Of 30 Sensex stocks, 25 closed lower.

Bourses would remain closed on Wednesday and Thursday for 'Diwali Laxmi Pujan' and 'Diwali Balipratipada'. The BSE and NSE will conduct a special 'Muhurat' trading session on Wednesday.

The brokerage is concerned about patchy monsoon, election season, rising twin deficits, high crude prices, weak INR, slowing Chinese economy, trade wars, etc.  It wonders whether the market will recover at all or whether a bear market is the next phase?

October futures and options (F&O) expiry added to the woes as investors offloaded their long bets instead of carrying them forward to the next series for November, brokers said.

Besides, crude price going past USD 80 a barrel also dampened sentiments. Among 30-share Sensex pack, IndusInd Bank was the worst hit with 8.52 per cent fall, while Reliance Industries slipped 3.56 per cent.

The economy grew 6.5 percent in the third quarter from a year earlier, slower than 6.7 percent in the second quarter, the National Bureau of Statistics said on Friday.

Non resident Indians are a happy lot as a slump in rupee has given them a windfall gain on their foreign exchange earnings.

Mutual fund houses have made investments of over Rs 11,000 crore in domestic equities in the first two weeks of this month despite volatility in the stock markets, even as foreign investors pulled out a massive Rs 19,000 crore.

The Sensex swung nearly 880 points both ways on alternate bouts of buying and selling during the session. It finally ended 1.09% lower at 34,779 points. The Nifty too ended 131 points or 1.24% lower at 10,453.

With two and a half months still remaining in the current calendar year, the net FII withdrawals could well cross the psychological mark of Rs 1 lakh crore.