BSE Sensex slipped by 317.82 points to 28,351.68, while the Nifty50 declined by 94.75 points, or 1.07%, to 8,736.80 on Monday, Mint reported. The rupee had a weak opening at 66.78 per dollar on Monday morning as many Asian currencies fell after Friday's oil price plunge.

Losses in several sectors including, IT, realty, power and consumer durables, caused the Nifty50 index to drop below its support level of 8,800 on Monday morning, The Economic Times reported. ICICI Bank led the Nifty losses, followed by Mahindra & Mahindra, Lupin, HDFC, GAIL India, IndusInd Bank, ITC, Bharti Airtel and ACC.

Reserve Bank of India Governor Urjit Patel dismissed the risk of inflation at his first official meeting with economists and said that factors such as the goods and services tax will not push inflation. This led investors to believe he will not take an aggressive stand at his first monetary policy review. The ongoing United States presidential campaign also reportedly influenced the decline.