The benchmark index fell as much as 2.3% in early trade on Monday before recovering slightly to close 1.4% lower, as global bond yields climbed on renewed expectations of another interest rate increase.

Banking and real estate stocks led the decline, both sectors sensitive to borrowing costs. Trading volumes were well above the monthly average as institutional investors trimmed positions.

Analysts said the move tracked a broader repricing across Asian markets rather than any domestic trigger, and expect volatility to continue until the central bank's next policy statement.