Sharp losses in financial, auto and metal stocks pulled the markets lowerDomestic stock markets slumped more than 2 per cent on Monday in their worst single-day loss in three weeks, dragged by a selloff across sectors amid rising COVID-19 cases both at home and abroad.

The S-P BSE Sensex index swung in a range of more than 1,050 points, plummeting to as low as 38,990.76 after rising to 37,938.53 at the strongest level of the day.

The broader NSE Nifty 50 benchmark tanked to as low as 11,218.50 in late afternoon deals, having risen to a modest 11,535.25 earlier soon after beginning the session just above the 11,500 mark. The Sensex ended 811.68 points - or 2.09 per cent - lower at 38,034.14 and the Nifty settled at 11,250.55, down 254.40 points - or 2.21 per cent - from its previous close - their worst day since August 31.

Sharp losses in financial, auto and metal stocks pulled the markets lower. IndusInd Bank, Tata Motors, Hindalco, Tata Steel and JSW Steel, closing between 6.05 per cent and 8.52 per cent lower, were the worst hit among the 47 laggards in the Nifty basket of 50 shares.Reliance Industries (closing 2.18 per cent lower), ICICI Bank (5.15 per cent) and Bharti Airtel (5.81 per cent) were the top drags on Sensex, together accounting for a loss of more than 300 points in the index.The Nifty Bank - comprising stocks of 12 major lenders in the country - dropped 3.02 per cent for the day. Over the weekend, the country passed three laws aimed at allowing farmers to sell their produce directly to food processors and retailers, sparking protests from the Opposition which said the bill would leave farmers at the mercy of large corporations."It is a very positive development.

It will also help in reducing inflation over the period of time, as there will be direct chain between farmers and end users.

However, conversion of the bill into law and execution are of utmost importance," Anita Gandhi, director at Arihant Capital Markets, told TheIndianSubcontinent.The National Stock Exchange's India VIX index - a gauge of the expectation of volatility in the near term - rose 10.69 per cent.

Overall market breadth was extremely negative with an advance-decline ratio of more than 1:5, as 291 shares rose on the NSE against 1,637 that fell. Meanwhile, the number of COVID-19 cases in the country touched 5.49 million by Monday morning, according to official data.Asian shares held tight ranges on Monday, as investors awaited developments on US fiscal stimulus and coronavirus vaccines amid a resurgence of infections in Europe.MSCI's broadest index of Asia Pacific shares outside Japan declined 1.37 per cent, but Japan's Nikkei 225 benchmark rose 0.18 per cent.

The E-Mini S-P 500 futures were down 0.60 per cent, indicating a negative start for US markets on Monday.(With inputs from agencies)