After last week's 2 percent fall, on Monday the Nifty broke through another important level to close over 2 percent lower, while midcaps and smallcaps ended 3 percent lower.

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India was the top loser compared to other large markets.

In an interview to CNBC-TV18, Jonathan Schiessl, Deputy CIO at Westminster Asset Management said if there is easing of policy in China, then some money might migrate out of India into China.

"The world is focused on China, and what is going on domestically in China with the economy. And therefore, if we see an easing in policy, (towards) which there does seem to be some initial move, then perhaps some money might migrate out of India into the likes of China."

Also Read: Sensex, Nifty in free fall; here’s what is fuelling the market crash

He said, India has outperformed other emerging markets quite dramatically and so a little bit of profit-taking would not be surprising.

He continues to like private banks and domestic cyclicals in the Indian market.

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(Edited by : Thomas Abraham)