Key benchmark indices extended fall and hit fresh intraday low in early afternoon trade. At 12:28 IST, the barometer index, the S&P BSE Sensex, was down 414.96 points or 1.09% at 37,749.65. The Nifty 50 index was down 119.95 points or 1.05% at 11,336.95. Shares of state-run oil marketing companies gained. Negative Asian stocks weighed on sentiment.

The Sensex was currently trading below the psychological 38,000 level after sliding below that level in early trade. Trading for the week began on a subdued note as domestic stocks dropped in early trade on negative Asian stocks. Stocks traded with weakness in morning trade. Weakness persisted on the bourses in mid-morning trade.

The S&P BSE Mid-Cap index was down 0.96%. The S&P BSE Small-Cap index was down 1.09%.

The market breadth, indicating the overall health of the market, was weak. On the BSE, 633 shares rose and 1755 shares fell. A total of 133 shares were unchanged.

L&T dropped 1.32%. L&T Construction, the construction arm of L&T, was awarded large contracts for its Buildings and Factories and Water and Effluent Treatment businesses. The announcement was made during market hours today, 25 March 2019.

Shares of state-run oil marketing companies rose after crude oil futures declined in the international commodity market. HPCL (up 1.92%), Indian Oil Corporation (up 2.01%) and BPCL (up 0.54%) edged higher.

Lower crude oil prices could reduce under-recoveries of public sector oil marketing companies (PSU OMCs) on domestic sale of LPG and kerosene at controlled prices. The government has already freed pricing of petrol and diesel.

In the global commodities markets, Brent for May 2018 settlement was down 46 cents at $66.57 a barrel. The contract fell 83 cents, or 1.22% to settle at $67.03 a barrel during the previous trading session.

The Ramco Cements rose 0.21%. The Ramco Cements has subscribed to the rights issue offer of Ramco Industrial and Technology Services and has acquired 45 lakh shares of Rs 10 each at par on 21 March 2019. Consequent to the acquisition, the shareholding of the company in Ramco Industrial and Technology Services is 94.12%. Hence Ramco Industrial and Technology Services would be the subsidiary company of the company. The announcement was made after market hours on Friday, 22 March 2019.

Overseas, Asian markets plummeted Monday, amid heightened recession worries. U.S. stocks closed sharply lower Friday, after a downbeat round of economic data in Europe and the U.S. stoked global growth fears while a closely watched measure of the yield curve inverted for the first time since 2007, triggering recession worries.

According to the flash reading of IHS Markit's purchasing manager's index, the manufacturing index fell to 52.5 in March from 53 in February. U.S. wholesale inventories rose 1.2% in January after a revised estimate of a 1.1% increase in December, the Commerce Department said.

In Europe, at a pivotal European Council summit where meetings overran dramatically, the European Union offered the U.K. a two-pronged plan to extend Brexit beyond the March 29 deadline. The U.K. will be offered a delay until May 22, if MPs approve the deal Prime Minister Theresa May had negotiated. If not, the EU will support a shorter delay, to April 12 to formulate a new plan.

The flash PMI figure for the eurozone in March showed that the preliminary Markit PMI Composite figure, seasonally adjusted, was 51.3, below the February figure of 51.9.