Equity benchmark Sensex plummeted 5.94 per cent or 2,002 points on Monday, tracking massive sell-offs in global markets amid rising US-China tensions.

After a highly volatile session, the 30-share BSE index settled at 31,715.35, plunging 2,002.27 points, or 5.94 per cent.

Similarly, the broader NSE Nifty suffered a heavy loss of 566.40 points, or 5.74 per cent, to settle at 9,293.50.

ICICI Bank was the top laggard in the Sensex pack, sinking over 10 per cent, followed by Bajaj Finance, HDFC, IndusInd Bank, Axis Bank and Maruti.

Shares of Reliance Industries fell over 2 per cent after the oil-to-telecom conglomerate on Thursday posted its biggest ever drop in quarterly net profit.

The company’s net profit in January-March dropped 37 per cent to Rs 6,546 crore, the lowest in three years.

Earlier in the day, Silver Lake -- one of the world’s largest tech investors -- agreed to invest Rs 5,655.75 crore to buy a 1.15 per cent stake in Jio Platforms.

Bharti Airtel and Sun Pharma were the gainers in the BSE index.

According to Narendra Solanki, head-equity research (fundamental) at Anand Rathi, the domestic markets opened lower taking negative cues from peers in Asia.

Claims by the US over Covid-19 sparked fears of a renewed trade war and fresh tussle with China in connection with its role in the spread of the pandemic.

Although the major markets in Japan and China were closed for holidays, stocks in other Asian markets fell as tensions between the US and China weighed on investor sentiment, Solanki said.

Bourses in Hong Kong and Seoul plunged up to 4 per cent, while stock exchanges in Europe opened with significant losses.

Back home, sentiments also remained downbeat after the country’s manufacturing activity growth declined sharply in April 2020, amid the national lockdown to help stem the spread of the coronavirus infections, he added.

The headline seasonally adjusted IHS Markit India Manufacturing Purchasing Managers’ Index (PMI) fell to 27.4 in April, from 51.8 in March, reflecting the sharpest deterioration in business conditions across the sector since data collection began over 15 years ago.

According to analysts, the market has realised that the cascading effect of the extended restrictions on the domestic economy and corporate earnings is much more than anticipated.

The rupee depreciated by 64 paise to provisionally settle at 75.73 against the US dollar.

International oil benchmark Brent crude futures were trading 2.95 per cent lower at $25.66 per barrel.