Twenty-four of the 30 Sensex stocks finished in the red.
Declining for a third consecutive session, domestic stock markets closed in the red on Monday as political uncertainties in the US and slow global economic growth dampened investor risk appetite.
SP BSE Sensex dropped 271.92 points, or 0.76 per cent, to settle at 35,470.15.
The broader Nifty ended 90.50 points, or 0.84 per cent, lower at 10,663.50 as thirty-six of its 50 stocks finished in the negative zone.
Both the benchmark indices posted their worst closing levels since December 11.