MUMBAI: The key Indian equity markets plunged on Monday, as investors were spooked by Prime Minister Narendra Modi's hint of raising taxes on income generated via stock market trade.
Besides, continuous outflow of foreign funds and selling pressure dragged the key domestic indices lower.
The wider 50-scrip Nifty of the National Stock Exchange (NSE) dropped by 77.50 points or 0.97 per cent to 7,908.25 points.
The Bombay Stock Exchange (BSE) Sensex, which opened at 25,992.41 points, provisionally closed at 25,807.10 points (at 3.30 p.m.), down 233.60 points or 0.90 per cent from the previous day's close at 26,040.70 points.
The Sensex touched a high of 26,008.57 points and a low of 25,753.74 points during intra-day trade.
The BSE market breadth was tilted in favour of the bears -- with 2,015 declines against 583 advances.
On Friday, both the Sensex and the Nifty had closed on a flat note, as foreign fund outflows and broadly negative global indices subdued investors' sentiments.
The barometer index on December 23 inched-up by 61.10 points or 0.24 per cent to 25,959.99 points, while the NSE Nifty gained only by 6.65 points or 0.08 per cent to 7,985.75 points.