Indian markets on Monday logged their biggest drop in over 2 months with benchmark Sensex tanking 604 points to end below 29,000 mark and the Nifty index slipping 181 points to fall below 8,800 level on fears an earlier-than-expected rate hike by US will hit inflows.

Furthermore, weakness in the rupee, which depreciated to 62.58 intra-day at forex markets weighed on the sentiments.