At 28,175.05, the Sensex is down 163.98 or 0.58% at present.
It touched the day's low at 28,263.45, down by 88 points. The 30-share index opened higher at 28,450.42 and moved in a range of 28,458.80 and 28.309.58.
The gauge had lost 12.31 points in the previous session.
"Stock markets started the week on lacklustre note".
"Banking, pharma, auto, oil-gas, textile, aviation and media-entertainment stocks traded with bearish sentiments", Desai said.
The NSE Nifty ended 67.60 points or 0.77 per cent down at 8,724.70. Meanwhile, Foreign portfolio investors bought shares worth net Rs 504.51 crore last Friday, as per provisional data. Shanghai reduced 0.15 per cent. Hang Seng increased 1.23 per cent. Nikkei rose 1.03 per cent.
European stocks were broadly higher in early trade, with banks leading the surge on expectations that they will benefit from the era of higher interest rates. Sensex closed in negative territory, at 28155.56 levels, down by 183.75 points or 0.65%. BSE Midcap and Smallcap indices plunged 1.2 per cent and 1.5 per cent respectively. M&M gained the most among Sensex constituents by rising 1.80% to Rs 1,301, followed Power Grid at 1.60% to Rs 203.05. Among major losers were: Coal India 1.86 per cent, SBIN 1.39 per cent, Maruti 0.75 per cent and Heromotoco 0.69 per cent.
Tata Motors was the worst performer on the Sensex, plummeting 10.32 per cent to Rs 436.55 after the company yesterday reported a steep 96.22 per cent decline in consolidated net profit for the December quarter. The BSE Small-Cap index provisionally dropped 1.52 per cent.