After a relief rally in the previous session, the BSE Sensex again slipped by 109 points on Monday to settle at a fresh 19-month low of 24,825.04 on caution ahead of the release of macroeconomic data and TCS' earnings numbers while another sell-off in China, also hit the market mood.
The benchmark index fell for the fifth time in six days to extend the last week's steepest loss in more than four years.
"Indices opened in deep red, tracking global markets, but recovered in the second part of session on the back of recovery in Europe," said Gaurav Jain Director Hem Securities.
Investors see equities to remain volatile in the near-term on account of tomorrow's IIP data and CPI inflation numbers.
Moreover, IT major TCS is also lined up to release numbers for the third quarter after the market closing tomorrow.
The BSE benchmark Sensex resumed lower at 24,787.11 and dropped further to a low of 24,598.90 before ending at 19th-month low of 24,825.04, showing a loss of 109.29 points or 0.44 per cent. It had risen by 82.50 points on Friday.
The index had settled at 24,805.83 points on June 4, 2014.
The 50-share NSE Nifty fell by 37.50 points or 0.49 per cent to close at 7,563.85.
"Short covering, lower level buying and strengthening of rupee also helped the indices recoup the losses to some extent," Jain added.
M&M took the biggest knock as it plunged by 3.40 per cent followed by Wipro 3.27 per cent, Adani Ports (3.13%), BHEL (2.57%), Dr Reddy's (2.56%), SBI (2.23%), ICICI Bank (2.22%), Cipla (1.96%) and TCS (1.43%).
Other prominent losers included Coal India, Sun Pharma, ONGC, HDFC, GAIL, Lupin, Bajaj Auto, Tata Steel, Bharti Airtel, Infosys and L&T.
From the gainers pack, RIL surged the most by climbing 2.69 per cent, Tata Motors rose 2.04 per cent and Maruti Suzuki perked up by 1.51 per cent.
In overseas markets, European shares reversed initial losses, while Chinese stocks ended in deep red on continued worries about China's stalling economy.
In mainland China, the Shanghai Composite Index fell 5.33 per cent, whereas Hong Kong index ended 2.76 per cent lower.
Other regional indices, like Singapore, South Korea and Taiwan fell between 1.19 per cent and 1.54 per cent.
However, European markets were trading higher in afternoon trade as indices in France, Germany and the UK moved up by 0.17 per cent to 0.78 per cent.
Back home, the mid-cap index ended in the negative zone by falling 0.95 per cent while the small-cap shed 0.47 per cent.
Out of the 30-share Sensex pack, 22 scrips ended lower.
Among BSE sectoral and industry indices, healthcare fell by 1.37 per cent, followed by IT 1.10 per cent, teck (1.06 pc), finance (0.89 pc), bankex (0.79 pc), telecom (0.76 pc), capital goods (0.70 pc) and consumer durables (0.56 pc).
However, energy rose by 0.70 per cent followed by utilities (0.28 pc) and realty (0.25 pc).
The market breadth turned negative as 1,571 stocks ended lower, 1,228 closed higher while 131 ruled steady.
The total turnover dropped to Rs 2,917.95 crore from Rs 3,603.62 crore on Friday.