While the 6.4% correction from the peak in Nifty has made the market healthy, the valuations continue to be high.
The broader market outperformed the main indices. The S&P BSE MidCap index added 1.61% while the S&P BSE SmallCap index advanced 1.81%
Barring Nifty Metal index (up 0.83%) all other sectoral indices on the NSE opened lower.
The sell-off wiped off Rs 7.85 lakh crore of investors as the market capitalization of all listed companies plummeted to Rs 261.34 lakh crore.
Asian stocks are trading mixed on Monday as China kept its benchmark lending rate unchanged.
Market momentum has weakened recently and the market appears to be heading for a risk-off mode.
Sensex ended at 60,008.33, down 314.04 points or 0.52%, while Nifty dropped 100.55 points or 0.56% to settle at 17,898.65.
Japan's exports snapped seven months of double-digit growth in October due to slowing car shipments hit by global supply constraints.
Sensex settled at 60,322.37, down 396.34 points or 0.65%, while Nifty ended 110.25 or 0.61% lower at 17,999.20.
Most sectoral indices on the NSE were trading in the green. Nifty IT & Nifty Media indices rose 0.39% each