Mumbai: Broadly negative global market and profit booking dragged the benchmark Sensex down over 120 points during the afternoon session of the trade on Monday.
However, the Nifty paired some of the early losses to regain the 10,900-mark.
"Broader participation is not happening. Also, we are witnessing some profit booking after the Interim Budget and RBI's rate cut," said Rusmik Oza, Head, Fundamental Research, Kotak Securities, told IANS.
"In the run up to the general elections, investors are looking at sectors which are less susceptible to domestic factors. Therefore the export-oriented IT stocks are gaining."
Barring IT stocks, most others declined, led by heavy selling pressure in auto, healthcare and metal counters.
At 2.31 p.m., the BSE Sensex declined 122.98 points or 0.34 per cent at 36,423.50 from its previous close of 36,546.48. It touched an intra-day high of 36,588.41 and a low of 36,300.48.
The broader Nifty shed 42.60 points or 0.39 per cent at 10,901.
Stock-wise, Tata Steel, TCS, Kotak Mahindra Bank, Coal India and HDFC Bank advanced on the Sensex.
Mahindra and Mahindra, ONGC, Hero Moto Corp, Reliance and Bajaj Finance declined in a range of 1 to 4 per cent.