The S&P BSE Sensex plunged over 300 points in morning led by losses in ICICI Bank, HDFC, L&T, SBI and Tata Motors.
The Nifty came under pressure and slipped below 7,500 to hit its fresh 52-week low of 7495.65, weighed down by losses in realty, power, oil & gas, metal, consumer durable, and banking stocks.
The rupee depreciated 27 paise to 66.92 against the US dollar on Monday amid mixed trading in other Asian markets.
The domestic currency had closed 30 paise higher at 66.63 on Friday.
Rupee fell as Asian currencies remained directionless after data showed the Chinese CPI reading inched up to 1.6 percent in December from 1.5 percent in the previous month.
China’s major stock indexes opened lower on Monday after weak December inflation data was released at the weekend.