The 30-share BSE Sensex declined 216.73 points to 64,741.96. The Nifty slipped 63.05 points to 19,348.70.
Among the Sensex firms, ICICI Bank, Power Grid, HDFC Bank, Bharti Airtel, Asian Paints and Larsen & Toubro were the major laggards.
Bajaj Finserv, IndusInd Bank, Bajaj Finance and Sun Pharma were the major gainers.
In Asian markets, Seoul, Tokyo, Shanghai and Hong Kong were trading in the negative territory.
The US markets ended with marginal gains on Monday.
Global oil benchmark Brent crude declined 0.49 per cent to $84.76 a barrel.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 549.37 crore on Monday, according to exchange data.
The BSE benchmark jumped 594.91 points or 0.92 per cent to settle at 64,958.69 on Monday. The broader Nifty climbed 181.15 points or 0.94 per cent to 19,411.75.