A sharp selloff in the last hour of trade on Monday ensured that the market broke away from its positive momentum seen all through the last week. The Sensex managed to end the day over 200 points lower, while the Nifty gave up 11,000 as well as 10,950 and ended below the latter. A rise in wholesale inflation also weighed on indices.

Among sectoral indices, barring IT stocks, all of them ended in the red, with deep cuts seen among pharmaceuticals, metals, energy and PSU Banks, among others. In the broader markets, investors looked to dump stocks, as the Nifty Midcap index ended over 2.5 percent lower.

The Sensex is down 217.86 points or 0.60% at 36323.77, while the Nifty is down 82.00 points or 0.74% at 10936.90\. The market breadth was positive as 562 shares advanced, against a decline of 2,036 shares, while 176 shares were unchanged.

The annual rate of inflation based on monthly WPI stood at 5.77% (provisional) for June 2018 as against a print of 4.43% (provisional) in the previous month and 0.90% in June 2017.

"Mixed global cues couples with a disappointing inflation print at home, impacted investor sentiment. A higher inflation rate in a flat to slowing growth environment can be detrimental for the economy. Barring the IT index, all other sectoral indices on the National Stock Exchange closed the day in the red," Abhijeet Dey, Senior Fund Manager-Equities, BNP Paribas Mutual Fund said in a statement.