MUMBAI: A combination of domestic concerns and international developments pulled the markets down on Monday with the sensex closing nearly 500 points lower, its seventh consecutive session of losses.

Expectations that Aam Admi Party (AAP) may win Delhi elections handing the first state election defeat to PM Narendra Modi-led BJP, put investors on the back foot on Monday who liquidated some of their positions to stay in cash ahead of the results in Delhi on Tuesday .

In addition, most of the major Asian markets were flat to weak due to weak Chinese trade data while European investors were cautious as the developments in Greece did not seem too favourable for investors to take higher risks.

As a result, sensex closed 491 points lower at 28,227 with BSE’s market capitalization just a tad over the psychologically important Rs 100 lakh crore mark. On the NSE, nifty lost 135 points to close at 8,526.

Power companies witnessed selling, led by Reliance Infra and Tata Power, the two companies which supply electricity in Delhi. The selling came on the back of concerns that a win for AAP in Delhi may lead to audit of their books, and also the state government may force these companies to lower tariffs. Reliance Infra lost 8.7% to close at Rs 419 while Tata Power was down 2.4% at Rs 80.

On the international front, data released on Sunday showed that China's exports in January fell 3.3% against expectations of 5.6% rise, while its imports crashed by 19.9%, far ahead of expectations.

As a result, metals stocks too came in for selling in the domestic market since China is the world’s largest consumer of metals and a slowdown in demand in the world’s second largest economy may lead to lower prices for these commodities. Among the sensex stocks, Tata Steel closed 5.8% lower at Rs 348 while Sesa Sterlite closed 4.5% off at Rs 201.

Markets globally were also jittery after the new government in Greece threatened not to adhere to its financial bailout package conditions, international reports said.

