Benchmark indices fell over 1 per cent each on Monday in sync with weak global markets and a sharp fall in IT stocks.

The BSE benchmark Sensex tanked 861.25 points or 1.46 per cent to settle at 57,972.62. During the day, it tumbled 1,466.4 points or 2.49 per cent to 57,367.47.

Similarly, the NSE Nifty fell 246 points or 1.4 per cent to 17,312.90.

Tech Mahindra was the biggest loser in the Sensex pack, shedding 4.57 per cent, followed by Infosys, Wipro, HCL Technologies, Tata Consultancy Services, Kotak Mahindra Bank, Tata Steel, Axis Bank, ICICI Bank and State Bank of India.

On the other hand, Maruti, Nestle, Asian Paints, ITC, M&M and Hindustan Unilever were among the gainers.

Elsewhere in Asia, markets in Seoul, Tokyo, and Hong Kong settled lower, while Shanghai ended marginally higher.

Stock markets in Europe were trading lower during mid-session deals. The US markets had ended significantly lower on Friday.

"Jerome Powell's hawkish tone during the Jackson Hole symposium pointed towards a stricter rate hike while investors were expecting a milder policy action post the release of the softer July inflation reading. This has increased concern about an economic slowdown, which has caused a significant sell-off in the US market and spillover effects on markets around the world.

"The sell-off in emerging markets like India was exacerbated by concerns over the possible withdrawal of foreign funds, which was the backbone of the recent market rally," said Vinod Nair, Head of Research at Geojit Financial Services.

Meanwhile, the international oil benchmark Brent crude climbed 0.79 per cent to 101.8 per barrel.

Foreign institutional investors (FIIs) offloaded shares worth Rs 51.12 crore on Friday, according to exchange data.