Reuters Market Eye - The Sensex falls 0.9 percent, while the Nifty loses 0.92 percent. Falls track weaker regional shares, with the MSCI Asia-Pacific excluding Japan index down 2.2 percent on the day, on growing worries Spain will need to resort to a sovereign bailout.
Shares in Maruti Suzuki fall 5.1 percent after the chairman of the auto maker said over the weekend the Manesar factory hit by a deadly riot is not yet ready to reopen.
Shares in Reliance Communications drop 3.2 percent on Monday after shelving a planned Singapore initial public offering for its undersea cable unit, citing unfavourable market conditions.
Shares in cigarette maker ITC fall 1 percent ahead of April-June earnings results due out on Thursday.