Equity benchmark Sensex plummeted 1,708 points on Monday following an across-the-board selloff as spiking COVID-19 cases in the country spooked investors.

The 30-share BSE index sank 1,707.94 points or 3.44 per cent to end at 47,883.38.

Similarly, the broader NSE Nifty plunged 524.05 points or 3.53 per cent to finish at 14,310.80.

IndusInd Bank was the top loser in the Sensex pack, tanking over 8 per cent, followed by Bajaj Finance, SBI, ONGC, Titan, M&M, Bajaj Finserv, ICICI Bank and Axis Bank. Dr Reddy's was the sole gainer, climbing over 4 per cent.

"Domestic equities reminded the bloodbath of March 2020 as record rise in COVID-19 cases in the country and possibility of lockdowns in several states dented investors' sentiments," said Binod Modi, Head - Strategy at Reliance Securities.

Concerns of possible reversal in economic momentum and earnings recovery made investors risk-averse and huge selloff led to the erosion of nearly Rs 9 lakh crore in investor wealth, he added.

Elsewhere in Asia, bourses in Shanghai, Hong Kong and Tokyo were in the red, while Seoul ended with mild gains.

Stock exchanges in Europe were largely trading on a positive note in mid-session deals.

Meanwhile, international oil benchmark Brent crude was trading 0.57 per cent higher at USD 63.31 per barrel.