Here is a 10-point cheat-sheet:
1) Earlier in the day, trading was suspended in China markets earlier than scheduled after the benchmark Shanghai Composite index sank about 7 per cent, leading to a selloff across the globe.
2) China had banned shareholders with holdings of more than 5 per cent in a company from offloading shares in July as part of efforts to stem a rout that wiped trillions off market capitalisations. The ban will expire on Friday, triggering fears of a big selloff by major shareholders. Also impacting China markets, manufacturing contracted for the 10th straight month in December in the world's second-biggest economy, a survey showed on Monday.
3) In other Asian markets, Japan's Nikkei 225 tumbled more than 3 per cent while Hong Kong's Hang Seng retreated about 2.7 per cent. In Europe, Germany's DAX slumped over 4 per cent while France's CAC fell around 205 per cent. US stock indices also tumbled about 2.5 per cent.
4) Indian markets were also impacted after manufacturing activity in the country contracted in December for the first time in more than two years. Nikkei's Manufacturing Purchasing Managers' Index, compiled by Markit, fell to a 28-month low of 49.1 in December from November's 50.3.
5) Also, hurting the Indian stock markets, the rupee weakened to settle at a two-week low of 66.61 against dollar as compared to Friday's close of 66.14. (Read more)
6) China cut the value of its currency - yuan - against the dollar on Monday, making it weaker than 6.5 for the first time in more than four-and-a-half years as the world's number two economy struggles with its slowest growth in decades. A falling exchange rate makes exports from China more competitive against other countries' products in global markets. (Read: China suspends trade for the day after shares slide 7%)
7) A surprise devaluation in August last year saw China lower the yuan nearly 5 per cent against the dollar in a week, sending tremors through global markets on concerns Beijing was struggling to control a slowdown in growth.
8) Mahesh Nandurkar, executive director of CLSA India, told NDTV that the devaluation of Chinese currency can be a greater risk than expected rate hikes by the Federal Reserve this year.
9) Analysts also attributed the selling pressure in Indian markets to profit-taking after the recent rally sent benchmark indices Sensex and Nifty to nearly 2-month highs.
10) Strong selling pressure was seen across the board in Indian markets. Forty-six stocks out of the Nifty 50 basket ended in red, with Tata Motors, Idea Cellular, Bank of Baroda, PNB Hindalco and Bharti Airtel slumping at least 4 per cent.