The benchmark BSE Sensex plunged 360 points to close at 33,370.76 due to negative domestic and global cues. Profit-booking by funds and retail investors, rising crude oil prices, heavy fall in pharma stocks led by Lupin, and DII selling aided the downtrend.

The 30-share BSE index Sensex plummeted 360.43 points or 1.07 per cent to 33,370.76 and the 50-share NSE index Nifty closed lower by 101.65 points or 0.97 per cent at 10,350.15.

The BSE index touched a high of 33,865.95 and a low of 33,341.82 against the previous close of 33,731.19.

Among BSE sectoral indices, healthcare index fell the most by 3.51 per cent, followed by realty 2.24 per cent, consumer durables 2.03 per cent and PSU 1.92 per cent. On the other hand, IT index was up 2.06per cent and TECk 1.21 per cent.

Major Sensex losers were Lupin (-16.84%), Cipla (-7.18%), State Bank of India (-3.57%), Bharti Airtel (-3.45%) and Reliance (-2.98%), while the top five gainers were Infosys (+2.92%), TCS (+1.55%), Wipro (+0.87%), Kotak Bank (+0.33%) and ITC (+0.32%).

Oil prices surged overnight to their highest since mid-2015, raising concerns about the inflation outlook and hitting oil refiners such as Reliance Industries Ltd.

Brent crude hovering around the $64 a barrel mark is a concern for the country's domestic economy. It can cause a spike in inflation, influence the RBI's interest rate policy and can derail the domestic stock market too.

Lupin stock crashed to 52-week low as USFDA has issued a warning letter to the company's Goa and Indore sites.

Domestic institutional investors have suddenly turned net sellers in domestic equity markets. They have sold shares worth Rs 1,350 crore in November so far.

Crude oil at 2-year high

Oil prices rose 3.5 per cent on Monday, the highest since early July 2015, as Saudi Arabia's crown prince cemented his power with an anti-corruption crackdown, while the US rig count fell and markets continued to tighten.

The rise in oil prices is seen as likely to prevent the Reserve Bank of India from cutting interest rates anytime soon, even as economic growth has slowed to a three-year low - removing a potential trigger for markets.

According to brokerages, every $1 rise in crude oil will inflate india's import bill by $1.33 billion.

Dilip Bhat, Joint Managing Director at Prabhudas Lilladher Pvt Ltd, said the broader NSE index would likely struggle to gain much without more positive news on corporate earnings or the economy.

“From here on, if it (NSE index) has to move beyond 10,500 level and show sustainable rally, it will require solid support from corporate earnings as well as economic recovery in third and fourth quarters,” Bhat said.

Asian shares touched their highest in a decade, while oil prices edged down after surging to a more than two-year peak as Saudi Arabia's crown prince cracked down on corruption.

MSCI's broadest index of Asia-Pacific shares outside Japan edged up 0.2 per cent in early trade to its loftiest peak since November 2007, getting a bump higher after all three major US equity indexes closed at record highs overnight.

Japan's Nikkei slipped 0.2 per cent, feeling the pinch as the yen remained well above the previous session's lows.

(With inputs from Agencies)

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