The bank stocks are trading in red with Nifty Bank index slipping nearly 2 per cent weighed by an over 4 per cent fall in RBL Bank and IDFC Bank. The Nifty Fin Service index too has fallen nearly 3 per cent led by an 11 per cent fall in Indiabulls Housing Finance and also  near 10 per cent fall in Edelweiss Financial Services.

In the broader markets, both the S&P BSE MidCap and the S&P BSE SmallCap indices are trading over 2 per cent lower.

After Friday’s crash, which was led by financial stocks, the Reserve Bank of India (RBI) and the market regulator Securities and Exchange Board of India (SEBI) are closely monitoring developments in financial markets and are ready to take appropriate steps if needed, a central bank statement said on Sunday.

Share markets in major Asian centres Japan, China and South Korea were closed for a holiday on Monday, while currency markets were subdued as banks in those countries were shut.

Investors were squarely focused on the Sino-US trade war as China added $60 billion of US products to its import tariff list, retaliating against US duties on $200 billion of Chinese goods that came into effect earlier on Monday.