New Delhi- Indian stock markets witnessed a sharp decline on Monday, with the BSE Sensex plummeting by 1,350 points, or 1.69%, to settle below 79,000. This marks the index's most significant loss since October's market turbulence. The Nifty50 index also dropped significantly by 445 points, or 1.83%, breaking below the 24,000 mark.

Market analysts attribute this decline to intensified selling by Foreign Institutional Investors (FIIs) in the lead-up to the U.S. presidential election. The upcoming Federal Reserve meeting and weak holiday sales have contributed to investor caution.

"The recent wave of heavy selling in stocks is because of the growing nervousness around the upcoming U.S. elections, the anticipated Federal Reserve meeting, and ongoing selling by Foreign Institutional Investors (FIIs)," said Vijay Chopra, Market Expert.

Key stocks were heavily impacted, with Hero MotoCorp and Bajaj Auto witnessing a decline of around 5% each. Sun Pharma fell 4.44%. The NSE's volatility index surged by nearly 8%, indicating potential for further choppy trading sessions. Sector indices, including Nifty Media, Nifty Metal, Nifty Realty, and Nifty Oil & Gas, all dropped over 2%.