Equity indices spiralled lower on Monday following heavy losses in Reliance Industries after Amazon won an interim arbitration award to stall the Mukesh Ambani-led firm’s acquisition of Future Group’s retail assets.

A sharp fall in the rupee and a negative trend in global markets further unnerved investors, traders said.

After tanking 737 points during the day, the 30-share BSE index recovered some lost ground to close 540 points, or 1.33 per cent, lower at 40145.50.

The broader NSE Nifty tumbled 162.60 points, or 1.36 per cent, to 11767.75.

Bajaj Auto was the top laggard in the Sensex pack, tumbling 6.10 per cent, followed by M&M, Reliance Industries (RIL), Tata Steel, Tech Mahindra, SBI, ICICI Bank and Axis Bank. Index heavyweight RIL accounted for most of the losses, sinking 3.97 per cent.

Global markets were on the back foot amid an increase in Covid-19 cases in Europe and other regions and uncertainty over fresh stimulus in the US.

“Volatility was expected as we are nearing the US election date. The prices are high which limits the capacity of the market to handle uncertainties though the final outcome of the election is unlikely to change the long-term trend of the global market.

Rising Covid cases in the US and Europe and delay in US stimulus has added to worries,” said Vinod Nair, head of research at Geojit Financial Services.