Stocks markets wiped out their entire gain for 2016 on Monday as the 2-week downdraft deepened further on Monday. Sentiment took a fresh hit after Prime Minister Narendra Modi, over the weekend, hinted at higher taxes for capital markets. A clarification on the contrary issued by Finance Minister Arun Jaitley failed to soothe market's frayed nerves.

The Nifty fell 73 points, or 0.9 per cent, to 7913 points, ending below previous year's close of 7,946 points as traders pressed heavy sales at the start of play. The market had been losing steam since December 14 but the fall was accompanied by low volumes. Modi's comment on capital market investors not contributing enough to nation building dented sentiment further. Traders added to the downward momentum by initiating sales on derivatives contracts on the Nifty in a bid to earn time value of options in the last week of the monthly expiry of futures and options contracts.

The Nifty was the worst performing index in Asia as well as Europe. The index has fallen for 9 out of the previous 11 sessions.

Here is a snapshot of the major events of the day:

* The Sensex fell 234 points to 25,807 points. Lupin was the top loser, down 3%. Hindustan Unilever gained 1.7 per cent. Reliance Industries was the top traded stock on the index.

* Hindalco, Cipla, Bank of Baroda, Aurobindo Pharma and Eicher Motors dropped 3-5 per cent and were among 45 shares that ended lower on the Nifty.

* Hindustan Unilever, Bharti Airtel, TCS, ITC and HCL Technologies rose modestly and were the five stocks that inched up on the Nifty.

* Divi's Labs plunged 11 per cent, and was the top traded stock by value on news that the US FDA had made observations on one of its drug manufacturing plants.

* Reliance Communications, South Indian Bank and DLF were the top traded shares by volume.

* Major indices dropped between 1.1-2.9 per cent. Mid Cap Index was the top loser.

* All sectoral indices, except the FMCG benchmark, dropped between 0.5-2.8 per cent. Investors rushed to the relative safety of FMCG companies such as Dabur, ITC and Hindustan Unilever, which provide predictable revenue and profit streams.

* Bears ruled Dalal Street with 1,365 shares falling versus 258 that rose.

* Sentiment took a major hit in the derivatives segment as well with 167 futures falling compared to 10 that rose.